Islamabad: Income Tax Amendment Ordinance has been issued to end tax exemption of Rs 140 billion which will be implemented immediately. Tax credit facility has been given to 62 institutions in the ordinance.
According to details, the ordinance to amend the NEPRA Act issued due to pressure from the International Monetary Fund (IMF) on the federal government of Pakistan. The government got the authority to receive Rs 140 billion on electricity bills. The government will be able to charge 10% surcharge on electricity bills.
According to a decree signed by President Dr. Arif Alvi, the tax law has undergone more than 75 amendments. The tax exemptions granted to Shaukat Khanum Memorial Trust, Sharif Trust and Alamgir Welfare Trust are reserved.
An additional burden of more than Rs 700 billion will be put on the power consumers. The federal government has been given the power to increase the surcharge and make electricity more expensive. The ordinance amending the NEPRA Act will be implemented immediately. The government has been given the power to impose a surcharge of up to Rs 1.40 per unit.
According to the ordinance, the PML-N government had abolished the power to impose surcharge on electricity bills. In the next two years, the government will have the power to increase the price of electricity separately up to Rs 5 and a half. An additional burden of Rs 150 billion will be imposed on the people in terms of surcharge.
According to the ordinance, the power system has to get Rs 1400 billion annually. The government has declared it necessary to impose surcharge for the solution of circular debt. NEPRA has got autonomy regarding electricity prices.
Tax evaders will be fined 50% due to the reduction in their income. Failure to display the tax number on the shop and fail to submit an income tax return will be fined 5,000 rupees. The installation fee for the new refinery will only be waived until December 31, 2021. From July 1, 2021, income tax will be levied on private power plants.