‘Cut 2 per cent in Super Tax, raise PKR10 in petroleum levy,’ senate body recommends

ISLAMABAD: The Senate Standing Committee on Finance and Revenue has recommended a two per cent cut in the proposed Super Tax and asked for it to be pegged at eight per cent on income exceeding PKR500m rupees and 6 per cent on amounts exceeding PKR400m rupees.

Meanwhile, the committee headed by Senator Saleem Mandviwalla on Tuesday, proposed a hike in the Petroleum Development Levy (PDL) by PKR10 to PKR60 ‘since the government has set revenue collection target from PDL at PKR689b for Fiscal Year (FY) 2023-24. The Minister of State for Finance Musadik Malik however clarified that the ministry had no intentions of raising the levy.

The committee also recommended a 1 per cent advance tax on withdrawals of up to PKR50,000, with Senator Mohsin Aziz proposing to decrease the transaction amount from (ATMs) to PKR25,000.

Moreover, the committee approved repealing the tax rate of 2% for overseas Pakistanis on the purchase of immovable property.

The member of the FBR informed the committee that in order to encourage the enlistment of companies at the Pakistan Stock Exchange, the minimum tax rate under Section 113 would be reduced from the current 1.25% to 1% for listed companies.

The Senate Standing Committee on Finance and Revenue accepted the proposal to increase withholding tax rate from 1 per cent to 5 per cent on payments made to non-residents through debit/credit or prepaid cards, while keeping it at 10 per cent for non-Active Taxpayer List (ATL).

Recognizing the importance of regulating foreign exchange outflow, the committee proposed discouraging non-essential purchases online “to maintain a stable financial environment”.