The holding tax on cash withdrawals has been abolished in the new financial year’s budget.
In the budget, 12 withholding tax clauses have been removed, including withholding tax on cash withdrawals.
Withholding tax on banking transactions other than cash has been abolished. Withholding tax is also being abolished on remittances from credit and debit cards.
The budget also proposes to abolish withholding tax on domestic and international air tickets.
In the budget, the government introduced the ‘My Car Scheme’ for the citizens.
According to the scheme, customs and regulatory duty for vehicles up to 850 cc has been abolished, exemption from advance customs duty on already manufactured vehicles and new models has also been given.
In his budget speech, Shaukat Tareen said that in this age of special technology, industries would be given tax exemption on import of machinery.
According to the scheme, the sales tax rate on vehicles up to 850 cc has also been reduced from 17 to 12.5 per cent, while value added tax on locally manufactured 850 cc vehicles is being abolished.
Tax exemption has been given on electric vehicles, kits, CKD, federal excise duty on electric cars has also been abolished.