1- In order to facilitate the people of tribal area and encourage investment and economic growth in these areas, exemption is being given from levy of FED to the industrial units located in FATA and PATA. #Budget2021#C4S
2- The provision to revise return without prior approval of the Commissioner-IR which is available in Sales Tax Act, 1990 is now proposed to be made available in Federal Excise Act, 2005. #Budget2021#C4S
3- Exemption from federal excise duty to 4-wheelers granted vide granted vide Tax Laws (Amendment) Ordinance, 2021 is proposed to be incorporated in the Federal Excise Act. #Budget2021#C4S
4- The rate of federal excise duty on Telecommunication is proposed to be reduced from 17% to 16%. #Budget2021#C4S
5- Payment on account of Merchant Discount Rate (MDR) is proposed to be excluded from the purview of FED. #Budget2021#C4S
6- For establishment of Border Sustenance Markets, exemption from Federal Excise duty is proposed to be granted on food related and other consumable goods. #Budget2021#C4S
7- Rising prices of locally manufactured small cars is a major concern for low earning families. Accordingly it is proposed that small cars upto engine capacity of 850cc may be exempted from federal excise duty. #Budget2021#C4S
8- In order to introduce new Export Facilitation Scheme, 2021, exemption on import and zero-rating on local supplies in respect of raw materials, components, parts and plant and machinery to registered persons is proposed. #Budget2021#C4S
9- FED on fruit juices was imposed vide Finance Act, 2019 and resultantly, prices of juices were increased. Moreover due to pandemic, this sector is faced with adverse situation. In order to provide relief to this sector, FED has been withdrawn on juices. #Budget2021#C4S
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5- Tax on “on” money on vehicles, if vehicle is disposed without registration.
6- Expansion of scope of withholding tax collection from supply chain below manufacturers and importers of specified sectors (sections 236G and 236H). #Budget2021#C4S
3- Section 3- 2(43A)(g): The definition of tier-1 retailer is streamlined through insertion of a new clause whereby a retailer who has acquired point of sale accepting payment through debit or credit cards from banking companies or any other digital payment service...
As a RELIEF MEASURES in Sales Tax Below amendments/ Changes have been proposed;
1- The minimum annual threshold of turnover from all supplies for cottage industry is proposed to be increased from Rs. 3 million to Rs. 10 million.
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2- The threshold of shop area in case of furniture outlet/showrooms is proposed to be increased from 1000 square feet to 2000 square feet for inclusion in tier1 retailer.
3- Public limited companies are proposed to be excluded from the purview of section 8B. #Budget2021#C4S
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4- A separate section introduced for allowing extension of time for furnishing of return. 5- Exemption is proposed to be granted to art and printing paper for publication and printing of Holy Quran.
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The proposed budgetary measures pertaining to SALES TAX for FY 2021-22 are:
To increase revenue from indirect taxes following measeures have been proposed; 1- The sale of goods through online market place is proposed to be brought into----
the sales tax net by deeming the online market place as supplier in respect of third party sales through their platform.
2- For specified goods, it is proposed that it may be made mandatory for manufacturers of such goods to obtain brand license for each separate brand or SKU.
3- Section 56C provides for prize scheme to promote tax culture. To ensure that the said incentive is not misused, a new sub-section is proposed to be inserted to provide for randomize “mystery shopping”. #budget2021#C4S