KARACHI: The government has announced imposition of tax on the domestic electricity consumers who are not on the Active Taxpayers List (ATL).
Through the Finance Bill, 2021, the threshold of monthly electricity bill has been reduced from Rs75,000 to Rs25,000 for the purpose of levying withholding tax at the rate of 7.5 per cent.
However, this tax will not be applied on persons who filed their annual income tax returns and are on the ATL issued by the Federal Board of Revenue.
Other revenue measures in the Income Tax Ordinance, 2001 proposed through the Finance Bill, 2001 included introduction of a special regime for the export of services at par with the export of goods that will be taxed at one per cent under the final tax regime.
The bill proposed to eliminate block taxation of property income and shift to the normal tax regime. It also proposed reduction in block taxation on the capital gains on the disposal of immoveable properties if gain exceeds Rs20 million.
Besides, reduction in the block taxation on interest income, if it exceeds Rs5 million is also proposed. The government also proposed to expand the scope of withholding tax collection from the supply chain below manufacturers and importers of specified sectors.
The bill proposed to tax profit on the debt component of GP fund and other such funds. The finance bill also proposed to withdraw personal income tax exemptions.