Salary increase 20%, SMS tax withdrawn

[Naveed Yaseen]

* Federal excise duty on cellular services increased to 19.5 percent
* 16 percent GST on import of newsprint withdrawn
* NAB to close up shop within three months

By Irfan Ghauri

ISLAMABAD: The government on Monday announced a five percent increase — from 15 percent to 20 percent — in the ad-hoc relief allowance for BPS-1 to BPS-16 employees, and withdrew the proposed 20-paisa federal excise duty on SMS.S.

Concluding the general debate on the Finance Bill 2009-10 in the National Assembly, State Minister for Finance and Economic Affairs Hina Rabbani Khar said the 20 percent ad-hoc relief would also apply to armed forces personnel and pensioners. She said the government had also withdrawn the carbon surcharge on CNG, but added the federal excise duty on cellular services had been increased from 19 to 19.5 percent.

Exempt: Khar said the government had decided to exempt import of newsprint from the 16 percent general sales tax, adding only a five percent custom duty would apply on it. She said income tax collected on exports would be deemed as the final discharge of exporters’ liability to help them compete in the international market. Lowering the withholding tax on industrial imports from four to three percent would provide similar relief to manufacturers, she added.

The seventh National Finance Commission (NFC) would hold its first meeting by July, and the deliberation process would be completed within three months, she said. She said the government would no longer require national tax numbers (NTN) and computerised national identity card numbers for sales to unregistered purchasers, while an NTN would be made voluntary to open a bank account.

The state minister said the government would conduct consultations on the budget in standing committees on finance two months prior to the budget presentation, adding the government would ensure the new budget is tabled in parliament before May 30. She said the government would obtain approval for supplementary appropriations from the National Assembly on a quarterly basis.

Closing time: Khar said the government would decommission the National Accountability Bureau within three months. She said, on the recommendations of the Senate, 70 proposed clauses in the bill would be deleted, while another 18 would be amended.

http://www.dailytimes.com.pk/default.asp...2009_pg1_1