Minister for Information and Broadcasting Chaudhry Fawad Hussain Thursday announced that the Federal Cabinet has approved finance bill.
Minister for Information and Broadcasting Chaudhry Fawad Hussain Thursday announced that the Federal Cabinet has approved finance bill. On his official twitter handle, the federal minister said that the finance supplementary bill 2021 will be introduced in the National Assembly (NA). 17% GST on 144 items to yield Rs360 billion. The actual revenue impact from slapping GST on the 144 items will be far higher than the estimated Rs352 billion, as many of them will be taxed for the first time. Their revenue impact was not available with the Federal Board of Revenue (FBR).
Another roughly Rs7 billion will be collected by increasing income tax rate on mobile phone calls from 10% to 15%.
The sources said the zero-rating available on imports and supplies of goods and raw materials for preparations milk for infants would be withdrawn and be taxed at 17% to raise Rs9 billion revenues annually. This includes Rs30 billion at the import stage and Rs15 billion at local stage. However, the FBR said raw material would be zero-rated and it would refund the amount.
Breads prepared in bakeries, restaurants, food chains and shops will be taxed at 17% rate for nearly Rs5 billion every year. Nan, chapatti and sheermal prepared at tandoors will remain exempted. Cooked food served in messes will be taxed at 17% rate.
