ISLAMABAD, May 29: The government is planning in the next budget (2006-07) to tax all perks and benefits of the salaried class, impose capital value tax on real-estate and central excise duty on financial services by utilising the database of the National Database Registration Authority (Nadra), it is learnt.
Informed sources told Dawn on Monday that the government would deduct taxes from the salaried class on a gross income basis by including all perks, allowances and other benefits in the salaries before enhancing the tax exemption limit.
A decision to this effect has already been taken in principle by the government and the Central Board of Revenue has been asked to work out details of the scheme. The percentage of tax would also go on increasing for various income slabs.
However, the average rate of tax on the salaried class would be comparatively lower than what people are currently paying, these sources said.
Under the existing system of tax on salaries, only the basic pay and some of the perquisites are taxable but many allowances like house rent, medical, etc, are exempt from tax.
The government has also decided to use computerised national identity card numbers for the purpose of all individual taxes through a new system of Integrated Tax Management System (ITMS) developed by the National Database Registration Authority (Nadra) for the tracking and monitoring of taxes.
For this purpose, the utility bills like telephone, gas, water and electricity would be utilised and monitored for income and expenditure and investments in the capital market and other transactions would tracked through Nadra’s interface.
