ISLAMABAD, June 5: The government has projected to raise additional revenues of Rs25 billion through several new measures proposed in the budget 2006-07. According to official documents released on Monday, additional taxes of Rs14 billion and Rs10.8 billion will be generated through new measures taken under the sales tax and income tax, respectively.
The government has proposed a levy of 2 per cent capital value tax (CVT) on the value of land as per registration in urban areas, measuring 500 square yards or one kanal, whichever is less. This limit will not apply to commercial property. Though it will not generate enough revenue, it is hoped that it will regulate the prices.
The rate of income tax on cash withdrawals from banks exceeding Rs25,000 has been enhanced from 0.1 per cent to 0.2 per cent. The exemption limit is now restricted to per day instead of the existing per transaction.
A flat rate of 5 per cent on gross rent has been proposed.
The taxation on stock exchanges has been increased. The CVT rate on purchase of shares has been raised to 0.02 per cent from 0.01 per cent; withholding tax on transaction has risen from 0.005 per cent to 0.01 per cent and withholding tax on commission has been increased to 10 per cent from 5 per cent.
