ISLAMABAD (updated on:
June 14, 2009, 03:30 PST):
The government has introduced a new 'IDP Tax' in the 2009-10 budget to raise additional funds for rehabilitation of the displaced persons of Swat, Dir and Buner (IDPs). Official sources told Business Recorder on Saturday that the IDP tax would only be applicable on individuals, whereas companies would not be liable to pay IDP tax.
The IDP tax would not have any impact on the contribution made by the private sector. The contributions made in the Prime Minister's relief fund for IDPs have already been exempted from income tax. Therefore, foreign organisations and other international relief organisations would not be liable to pay this tax.
It has been proposed to charge 5 percent tax on tax payable by individuals and AOPs whose taxable income exceeds Rs 1 million. Thus, if income is more than Rs one million, then 5 percent of the tax paid would be applicable. To support IDPs in their rehabilitation, a new tax is being proposed, to be charged on bonus income of corporate executives @ 30 percent of the bonus. This is a one-time levy and is payable for tax year 2009 only. The revenue impact of IDP tax would be around Rs 1.4 billion.
Copyright Business Recorder, 2009
|
PREVIOUS 
">