The “Income Tax (Second Amendment) Bill, 2021” issued subsequent to its passage through the Finance Act, 2021, has a revenue impact of Rs 140 billion and sales tax/federal excise duty (FED) exemptions deferred on June 30, 2021 amounted to Rs 100 billion.
The Income Tax (Second Amendment) Bill, 2021 has withdrawn income tax exemptions and concessions to the tune of Rs140 billion in March 2021.
Reports from the Federal Board of Revenue (FBR) confirmed that the FBR has finalised the Tax Laws (Fourth) Amendment Bill, 2021 to withdraw sales tax exemptions, reduce sales tax rates, and zero-ratings of Rs 330 billion.
However, the FBR has not yet prepared the summary for the federal cabinet for the withdrawal of the said exemptions to the tune of Rs330 billion.
In budget 2021-22, the FBR has taken sales tax measures of Rs215 billion and later deferred sales tax/federal excise measures of Rs100 billion including restoration of reduced rates of sales tax on dairy, poultry, and sales tax relief to the other sectors besides, withdrawal of the FED on mobile phone calls/SMS, and internet data usage.
Thus, the net impact of the sales tax/FED measures taken in the last budget through the Finance Act, 2021 stood at Rs115 billion.