09-21-2010, 11:40 AM
ISLAMABAD (September 21 2010): The federal government is likely to impose 10 percent income tax surcharge on withholding tax collected from electricity consumed by commercial and industrial consumers. This means that the withholding tax on electricity consumed by commercial consumers would increase from 10 percent to 11 percent and industrial consumers from 5 percent to 5.5 percent after imposition of flood surcharge.
Sources told Business Recorder on Monday that the government is expected to announce the imposition of 10 percent income tax surcharge during October 10-15, 2010 after completion of damage needs assessment in flood affected areas. The 10 percent income tax surcharge would be applicable on all categories of taxpayers including salaried class. It is expected that the Bill to impose flood surcharge may be moved with the reformed GST Bill in the Parliament.
In case the damage needs assessment is being competed by mid-October, the surcharge would immediately be imposed across the board. The income tax surcharge would be applicable on withholding tax deducted on power bill of the commercial and industrial consumers. Sources said that the surcharge would also be imposed on the tax calculated on the income declared by the taxpayers in their income tax returns. According to sources, only one uniform rate of income tax surcharge would be imposed across the board to generate more revenue.
A uniform rate of 10 percent income tax surcharge would be applicable on salaried class as well as businessmen to meet the revenue needs of the country. The surcharge may be imposed on the tax already deducted by the income earned by the business and trade. The income tax surcharge would not be applicable on persons falling below the exemption threshold, sources added.
Sources told Business Recorder on Monday that the government is expected to announce the imposition of 10 percent income tax surcharge during October 10-15, 2010 after completion of damage needs assessment in flood affected areas. The 10 percent income tax surcharge would be applicable on all categories of taxpayers including salaried class. It is expected that the Bill to impose flood surcharge may be moved with the reformed GST Bill in the Parliament.
In case the damage needs assessment is being competed by mid-October, the surcharge would immediately be imposed across the board. The income tax surcharge would be applicable on withholding tax deducted on power bill of the commercial and industrial consumers. Sources said that the surcharge would also be imposed on the tax calculated on the income declared by the taxpayers in their income tax returns. According to sources, only one uniform rate of income tax surcharge would be imposed across the board to generate more revenue.
A uniform rate of 10 percent income tax surcharge would be applicable on salaried class as well as businessmen to meet the revenue needs of the country. The surcharge may be imposed on the tax already deducted by the income earned by the business and trade. The income tax surcharge would not be applicable on persons falling below the exemption threshold, sources added.