ISLAMABAD: The Senate Standing Committee on Finance and Revenue has approved increase in the advance tax from two to five per cent on the sale and purchase of property for non-filers. The Senate Standing Committee on Finance and Revenue completed its day-long deliberations for finalising recommendations on the Finance Bill, 2022, here at the Parliament House under the chairmanship of Senator Saleem Mandviwalla on Tuesday.

The committee proposed amendments in the Finance Bill, 2022, recommending the government to charge one per cent market value as deemed income tax on plots valuing more than Rs25 million after five years of transfer of land.

The Senate panel also proposed amendments in the Capital Gains Tax (CGT) on the holding period and recommended that the holding period of the plot should be reduced from six to five years and revive the existing slabs for the payment of the CGT.

The committee approved the proposal to increase the rate of the Federal Excise Duty (FED) on the club, business, and first-class travel by air from Rs10,000 to Rs50,000.

The committee proposed a 12.5 per cent sales tax on the import of electric vehicles (up to 1000cc or 50KV) in CBU condition and a 17 per cent sales tax on the import of electric vehicles (above 50KV). Under the Finance Bill, 2022, the FBR has proposed a uniform rate of 2.5 per cent sales tax on the import of all types of electric vehicles in CBU conditions.

Committee approved the proposal of restriction on frequency of audits to once in four years. The committee approved the recommendation to increase tax on advertisements starring foreign actors which was moved by the Ministry of Information.

The standing committee also proposed that two per cent income tax that the government had proposed for all individuals, businesses, and companies earning more than Rs300 million should be collected only on the amount that was above the Rs300 million threshold.

The Senate Standing Committee on Finance has also approved 100 per cent increase in the vehicle registration tax for non-filers. The sales tax on goods imported by various agencies of the United Nations, diplomats, diplomatic missions, and other privileged persons and organisations which are covered under various acts and regulations have been exempted. The committee approved the said proposal.

Copyright Business Recorder, 2022