ISLAMABAD – The government today presented an economic reforms package envisaging revolutionary incentives and measures to encourage investment, exports, ease of doing business and strengthen important sectors of the national economy.
Finance Minister Asad Umar presented the package through The Finance Supplementary (Second Amendment Bill), 2019 before the National Assembly in Islamabad today.
The Finance Minister announced to reduce the tax for the small and medium enterprises sector from 39 percent to twenty percent to encourage business activity by low income investors especially the youth.
The finance minister also announced to cut interest rate at the agricultural loans from 39 percent to 20 percent to bolster the agriculture sector.
The Minister said the Agri-loans have already witnessed twenty-two percent boost during the PTI governments’ first six months.
Asad Umar also announced to reduce income tax on housing schemes for low income people from 39 percent to 20 percent to encourage housing sector under Prime Minister’s project for construction of five million Houses for the middle and lower middle classes of the society.
He said a revolving fund with an amount of five billion rupees will be provided as interest free loans for the construction of small houses.
Touching upon the taxation sector, the Finance Minister propose to abolish withholding tax on banking deposits and transactions for the filers.
He said non-filers would now be allowed to purchase automobiles upto 1300cc. However, their tax rate will be enhanced to generate more revenue and encourage the people to become filers.
The Minister said taxes on cars with engine capacity of 1800CC and above will be increased.He said Gas Infrastructure Development Cess will be removed from fertiliser production.