ISLAMABAD (Web News)
Income Tax Amendment Ordinance has been issued to end tax exemption of Rs 140 billion which will be implemented immediately. Tax credit facility has been given to 62 institutions in the ordinance.
According to details, the ordinance to amend the NEPRA Act issued due to pressure from the International Monetary Fund (IMF) on the federal government of Pakistan. The government got the authority to receive Rs 140 billion on electricity bills. The government will be able to charge 10% surcharge on electricity bills.
According to an ordinance signed by President Dr Arif Alvi, more than 75 amendments have been made in the tax laws. Tax exemptions granted to Shaukat Khanum Memorial Trust, Sharif Trust, Alamgir Welfare Trust are maintained.
An additional burden of more than Rs 700 billion will be put on the power consumers. The federal government has been given the power to increase the surcharge and make electricity more expensive. The ordinance amending the NEPRA Act will be implemented immediately. The government has been given the power to impose a surcharge of up to Rs 1.40 per unit.
According to the ordinance, the PML-N government had abolished the power to impose surcharge on electricity bills. In the next two years, the government will have the power to increase the price of electricity separately up to Rs 5 and a half. An additional burden of Rs 150 billion will be imposed on the people in terms of surcharge.
According to the ordinance, the power system has to get Rs 1400 billion annually. The government has declared it necessary to impose surcharge for the solution of circular debt. NEPRA has got autonomy regarding electricity prices.
Tax evaders will be fined 50 per cent of the tax due for showing less income, Rs 5,000 fine will be charged for non-display of tax number on the shop and non-submission of income tax returns. Installation of a new oil refinery will be exempted only till December 31, 2021. Income tax has been imposed on private power plants for July 1, 2021.