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Wajid Wasim & Co. Chartered Certified Accountants, Office # FR-15, 4th Floor, Marhaba Trade Tower, Naz Cinema Road, Peshawar (2026)

21/07/2025

Pakistan achieves $2.11 billion current account surplus in FY25

In a major economic milestone, Pakistan has registered a current account surplus of $2.11 billion for the fiscal year 2024–25, according to official data released by the State Bank of Pakistan (SBP).

This marks a remarkable turnaround from the previous fiscal year’s deficit of $2.07 billion, and an even more significant improvement compared to the $3.27 billion deficit recorded in 2022–23.

The surplus comes as a result of robust growth in exports and a sharp rise in workers’ remittances, which have played a key role in strengthening the country’s external balance. The SBP highlighted that this is the first time in over two decades that Pakistan has posted a current account surplus of this magnitude, indicating a shift toward a more stable macroeconomic environment.

Prime Minister Shehbaz Sharif welcomed the development, calling it a “very positive achievement” and attributing the success to prudent policies and strict fiscal discipline. “The current account surplus has reached the highest level in 22 years. This reflects the success of the government’s economic reforms and stabilisation measures,” he said in a statement on Friday.

He also noted that Pakistan’s foreign exchange reserves have now exceeded $19 billion, adding strength to the country’s financial outlook. “Improving financial and economic indicators show that the national economy is gradually returning to stability,” the prime minister added.

The premier emphasized that the surplus has been largely driven by policy support for exporters and facilitation for overseas Pakistanis who send remittances. “Our efforts to create a business and investor-friendly environment are bearing fruit,” he said. “The performance of the government’s economic team is commendable.”

Experts believe that Pakistan’s surplus will help ease pressure on the rupee, reduce dependency on external financing, and create space for future growth initiatives. The SBP is expected to continue supporting policies that reinforce export competitiveness and maintain external account stability.

As Pakistan moves forward, maintaining this surplus will be crucial for long-term economic resilience, and the government appears determined to preserve this momentum through structural reforms and strategic investments.

21/07/2025

📝 Income Tax Return – Tax Year 2025

Wajid Wasim & Co. Chartered Certified Accountants advises all valued clients to ensure timely filing of their Income Tax Return within the prescribed due date to avoid penalties and maintain compliance.

📅 Don't delay—consult us today for professional assistance.

📞 Contact now for appointment and guidance.

02/07/2025

وفاقی بجٹ 2025-26 کا اطلاق ہوگیا۔ ٹیکس نیٹ سے باہر شہری اب صرف سادہ اکاؤنٹ ہی رکھ سکیں گے۔ بینک اکاؤنٹ سے محدود رقم نکالنے کی اجازت ہوگی۔ سیلز ٹیکس میں رجسٹرڈ نہ ہونے والے بڑے دکانداروں کے خلاف کارروائی ہو گی ۔ سولر پینلز سمیت متعدد اشیا پر نئےٹیکس آج سےنافذ ہوگئے۔ تنخواہ دار طبقے کیلئے انکم ٹیکس میں کمی کا بھی اطلاق ہو گیا ۔ 109اداروں کو ٹیکس چھوٹ پر عملدرآمد کا بھی آغاز ہو گیا۔

مالی سال 2025-26 کا فنانس بل ایکٹ کی صورت نافذ ہونے سے پرانے ٹیکسوں میں ردوبدل اور نئے ٹیکسوں کی وصولی آج سے شروع ہوگئی ۔ نئےمالی سال میں ایف بی آر کیلئے ٹیکس وصولیوں کا ہدف 14131ارب روپے مقرر ہے۔ پیٹرولیم مصنوعات اور گاڑیوں پر 2.50 روپے کلائمیٹ سپورٹ لیوی، سولرپینلز کی درآمد پر 10 فیصد سیلز ٹیکس عائد کیا گیا ۔ ہائی برڈ گاڑیوں کے پرزوں پر 4 فیصد اور زرعی ٹریکٹرز پر15 فیصد ڈیوٹی نافذ ۔ آئی ڈراپس سمیت آنکھوں کی ادویات اور گلوکوز پر 10فیصد کسٹم ڈیوٹی عائد ہو گئی ۔

نئے فنانس بل کے مطابق 50 ہزار تک ماہانہ تنخواہ والے ملازمین پر انکم ٹیکس ختم کردیا گیا۔ ایک لاکھ روپے تک آمدن والے ملازمین کو ایک فیصد انکم ٹیکس دینا ہو گا۔ ساڑھے 8 لاکھ روپے سےزائد ماہانہ پنشن پر اب انکم ٹیکس وصول کی جائے گا۔ 5 کروڑسےزائد کی جائیداد اور 70لاکھ سے مہنگی گاڑی خریدنے کیلئے آج سے ایف بی آر کا سرٹیفکیٹ لازم ہے، سیلز ٹیکس کے غیررجسٹرڈ افراد کا کاروبار سیل یا پراپرٹی ضبط ہو سکتی ہے ۔ 5 کروڑ سے زائد ٹیکس فراڈ پر کمیٹی کی اجازت سے گرفتاری بھی ہو سکے گی ۔

آج سے ٹیکس نیٹ سے باہر شہریوں کے سیونگ یا کرنٹ اکاونٹ کھولنے پر پابندی ہوگی۔ وہ اب صرف سادہ بینک اکاونٹ ہی رکھ سکیں گے اور انہیں اکاؤنٹ سے خاص حد تک ہی رقم نکالنے کی اجازت ہو گی۔ مشترکہ بارڈر مارکیٹ میں فروخت ہونے والی 122 اشیا 3 کیٹگریز میں تقسیم کردیے گئے۔ پہلی کٹیگری میں شامل اشیا پر 5فیصد کسٹم ڈیوٹی عائد کردیا گیا ہے۔ دوسری کٹیگری پر 10 فیصد اور تیسری پر 20فیصد کسٹمز ڈیوٹی لی جائے گی ۔ ٹیکسٹائل سیکٹر کے آلات اور مشنیری کی درآمد پر کسٹمز ڈیوٹی زیرو، کینسر ، ہیپاٹائٹس بی کی ادویات اور ویکسینز جبکہ ادویات میں استعمال ہونے والے 380 اقسام کے خام مال کی درآمد پر بھی ڈیوٹی ختم کر دی گئی ہے ۔

05/01/2025

NTN or CNIC Mandatory for Sales Tax Invoices: FBR

The Federal Board of Revenue (FBR) has mandated that all sales tax invoices for taxable supplies made to unregistered persons must include the National Tax Number (NTN) or Computerized National Identity Card (CNIC) of the buyer.

This requirement aims to enhance transparency, streamline tax compliance, and curb tax evasion.

The FBR emphasized that this mandate is governed by Section 23 of the Sales Tax Act, 1990, which outlines the essential details and format of tax invoices issued by registered persons.

Key Provisions Under Section 23

1. Mandatory Details on Tax Invoices

Registered persons making taxable supplies are required to issue serially numbered tax invoices at the time of supply. These invoices must include the following details in Urdu or English:

• Supplier Information:

Name, address, and registration number of the supplier.

• Supplier Information:

Name, address, and registration number of the supplier.

• Recipient Information:

Name, address, and registration number of the recipient. For supplies made to unregistered distributors by manufacturers or importers, the invoice must include the recipient’s NTN or CNIC.

• Invoice Details:

o Date of issuance.

o Description, including count, denier, and construction in the case of textile yarn and fabric.

o Quantity of goods supplied.

o Value exclusive of tax.

o Amount of sales tax charged.

o Total value inclusive of tax.

2. Provisions and Exemptions

• The requirement to include CNIC or NTN became effective on August 1, 2019.

• This condition does not apply if the payment is made via debit card, credit card, or other digital payment modes.

3. Electronic Invoicing

The FBR has the authority to notify registered persons to issue electronic invoices, subject to conditions and restrictions. This move ensures a more
regulated and transparent invoicing process.

4. Limitations on Issuing Tax Invoices

Only registered persons or those paying retail tax are authorized to issue tax invoices. Additionally, no more than one tax invoice can be issued for a single taxable supply.

Objective of the Mandate

This requirement aligns with the FBR’s efforts to broaden the tax net and ensure better traceability of business transactions. By incorporating CNIC or NTN on invoices, the FBR aims to:

• Reduce tax evasion.

• Foster accountability among unregistered buyers.

• Encourage businesses to comply with tax regulations.

The FBR has also hinted at future technological advancements, such as digital authentication of invoices, to further enhance the effectiveness of this policy.

This regulation underscores the government’s commitment to strengthening Pakistan’s tax framework and improving revenue collection through robust and transparent mechanisms.

18/05/2024

&Co.

26/06/2023

Pakistan imposes additional tax burden of Rs215 billion to secure IMF loan program:

In order to overcome the impasse in securing a loan program from the International Monetary Fund (IMF), Pakistan has imposed an additional tax burden of Rs215 billion on its citizens.

Finance Minister Ishaq Dar expressed confidence that the ongoing ninth review with the IMF, under the extended fund facility (EFF), would soon be concluded. During discussions on the budget for 2023-24 in the National Assembly, he acknowledged Pakistan’s full compliance with prior actions, but highlighted the inability to materialize due to a shortfall in external financing.

To address this issue, Prime Minister Shehbaz Sharif engaged in two meetings with the Managing Director of the IMF in Paris. It was agreed that both parties would make a final effort to complete the pending review. Over the past three days, consultations have taken place, resulting in the agreement to implement additional taxation measures amounting to 215 billion rupees. The Finance Minister clarified that these measures would not burden the poor population. Additionally, current expenditures would be reduced by 85 billion rupees, without affecting the annual development plan, as well as salaries and pensions of government employees. The IMF has approved of this approach.

Emphasizing transparency, Ishaq Dar stated that the details of the meetings with the IMF would be shared with the public, and once an agreement is reached, it will be uploaded to the finance ministry’s website. As a result of the understanding with the IMF, the annual tax collection target of the Federal Board of Revenue (FBR) will be raised from 9200 billion rupees to 9415 billion rupees. The total budget outlay will now be 14480 billion rupees, and these measures are expected to contribute to reducing the fiscal deficit.

Recognizing the unsustainable nature of the expanding pension budget, the Finance Minister announced a series of pension reforms, including the establishment of a Pension Fund, with rules and regulations currently being developed. Furthermore, multiple pensions for officers of grade 17 and above will be abolished, and retired officers will receive only one pension. In the event of a pensioner’s death, their spouse and dependents will receive the pension for up to 10 years. If reemployed after retirement, the officer may choose between the pension or salary. These difficult decisions are deemed necessary to steer the country in the right direction.

Addressing essential commodity availability, the government will continue to provide reduced-rate essential commodities to the public through the Utility Stores Corporation. An allocation of 35 billion rupees has been made, including five billion rupees for the Ramazan Package and 30 billion rupees for the Prime Minister’s Relief Package. The allocation for the Benazir Income Support Programme is also being revised upward to 466 billion rupees.

Acknowledging the services and sacrifices of the armed forces in defense of the country, Ishaq Dar assured the timely release of sufficient funds to them as outlined in the budget. To tackle climate change and food security issues, 30 billion rupees have been reserved, with 30 billion rupees earmarked for the solarization of agri tube-wells and 31 billion rupees dedicated to youth-related initiatives.

The limit of investment on pensioners’ benefit accounts under the National Savings Scheme will be increased from five million rupees to 7.5 million rupees, while the authority of the Federal Government on Petroleum Development Levy will be restricted to 60 rupees.

Recognizing the contribution of overseas Pakistanis, an allocation of 80 billion rupees has been made to facilitate their remittances, including a prize scheme. Additionally, 90 billion rupees have been set aside for various schemes under the Sustainable Development Goals.

Ishaq Dar reiterated that the super tax introduced last year would be maintained for the upcoming fiscal year. He highlighted that efforts had been made to make it progressive by eliminating discrimination and adding more slabs to it. Regarding the 0.6 percent cash withdrawal tax for non-filers, he emphasized the importance of documenting the country’s economy and enhancing the tax-to-GDP ratio.

The Finance Minister clarified that the tax on bonus shares and cash dividends would be borne by the shareholders themselves, rather than the companies. He specified that the tax rate for dividends is set at 15 percent, while it is 10 percent for bonus shares. Ishaq Dar emphasized that the windfall gain tax is not targeted at any particular company or individual. This tax, which will come into effect in 2021, is a common practice in many countries and aims to add value to the economic system.

In regards to the tax imposed on manufacturers of inefficient fans, the Finance Minister announced a six-month grace period for them to upgrade their technology and produce more energy-efficient fans. Starting from January, a tax of 2000 rupees will be enforced on manufacturers who fail to comply.

Highlighting the large number of pending tax cases worth 3.2 trillion rupees in the courts, Ishaq Dar emphasized the need to strengthen the Alternate Dispute Resolution System. To address this issue, a three-member committee led by a retired judge from a High Court or the Supreme Court will be established to resolve tax-related matters. He clarified that while the committee’s decision will not be binding on individual taxpayers, it will carry weight for the Federal Board of Revenue (FBR).

Ishaq Dar confirmed that the government would continue to follow austerity measures in the next fiscal year as well. Furthermore, he announced the withdrawal of import restrictions to address the challenges faced by the business community. These restrictions were initially imposed last year to ensure the payment of external liabilities. The government’s focus will now shift towards enhancing the country’s foreign exchange reserves.

The demands for grants pertaining to various ministries and their attached departments for the upcoming fiscal year were approved by the National Assembly. Finance Minister Ishaq Dar presented these demands for grants. The opposition’s cut motions against the Cabinet Division and the Ministries of Communications, Energy, Information and Broadcasting, Interior, and Narcotics Control were rejected by the house.

Addressing the cut motions related to the Information and Broadcasting Division, Ishaq Dar refuted the claim that salaries had not been paid to Radio Pakistan employees for several months. He informed the house that a supplementary grant had recently been approved by the Economic Coordination Committee to ensure the payment of salaries.

The Finance Minister also mentioned that the government is devising a mechanism to support young filmmakers. The next session of the house will convene on Sunday at 10:30 am.

26/06/2023

FBR Given 31% Higher Tax Collection Target for FY24:

The Federal Board of Revenue (FBR) has been tasked with a 31 percent higher tax collection target for the fiscal year 2023-24, surpassing the target set for the outgoing fiscal year.

Finance Minister Ishaq Dar, while addressing the National Assembly on Saturday, announced an increase in the initial tax collection target for the FBR from Rs9,200 billion to Rs9,415 billion for the next fiscal year.

The FBR is currently striving to meet the tax collection target of Rs7,200 billion set for the ongoing fiscal year 2022-23. However, achieving the new target, which represents a 31 percent increase, will pose a significant challenge for the national tax agency. This challenge stems from the prevailing economic slowdown and the complex political landscape.

Experts in the field of taxation, as well as members of the business community, have already expressed their concerns regarding the ambitious tax collection target set for the next fiscal year. They believe that meeting such a high target may be difficult given the current economic conditions and the country’s political situation.

The FBR will need to adopt comprehensive measures and implement effective tax collection strategies to achieve the increased target. This may involve improving tax administration, broadening the tax base, curbing tax evasion, and enhancing compliance among taxpayers. The success of these initiatives will be crucial in meeting the heightened tax collection goal.

Furthermore, it is imperative for the government to consider the potential impact of this increased tax burden on businesses and individual taxpayers. Striking a balance between revenue generation and the overall economic growth is essential to ensure sustainable development and stability.

As the fiscal year 2023-24 approaches, the FBR will face the challenge of meeting the higher tax collection target amid economic uncertainties. The success of this endeavor will require close collaboration between the government, tax authorities, and various stakeholders to create a conducive environment for tax compliance and economic growth.

26/06/2023

National Assembly Approves Budget 2023-24 with New Recommendations of Heavy Taxes:

The National Assembly of Pakistan has given its approval to the budget for 2023-24, incorporating new recommendations for imposing significant taxes.

The Finance Bill 2023, which passed in the National Assembly on Sunday, includes amendments aimed at implementing the financial proposals of the federal government for the upcoming fiscal year, starting from July 1, 2023.

The budget emphasizes economic stability, sustainable and inclusive growth, and the mitigation of inflationary pressures, with a total outlay of Rs14.48 trillion. The Federal Public Sector Development Programme (PSDP) has been allocated Rs 1150 billion, marking the largest size ever in support of improving the standard of living for the people.

To promote the uplift of the agriculture, industries, and IT sectors, as well as provide relief to various segments of society, including the salaried class, the budget introduces special initiatives. Notably, the agriculture credit limit has been raised from Rs 1800 billion to Rs 2,250 billion, and Rs 30 billion has been allocated to converting fifty thousand agriculture tube wells to solar energy. Additionally, all taxes and duties on the import of quality seeds have been eliminated.

Under the budget, IT and IT-enabled service providers are permitted to import software and hardware equivalent to one percent of their exports without any taxes. The limit for these imports is set at fifty thousand dollars annually. Furthermore, the Prime Minister’s Youth Business and Agriculture Loans scheme will receive Rs 10 billion in funding.

The budget also encompasses salary increments, with a 35 percent ad-hoc relief allowance for employees in grade 1 to 16 and a 30 percent ad-hoc relief allowance for employees in scale 17 and above. Pension rates have increased by 17.50 percent, while the minimum wage has been raised from Rs 25,000 to Rs 32,000.

Furthermore, Rs 1804 billion has been allocated for defense affairs and services. The National Assembly also passed “The Election (Amendment) Bill, 2023” to introduce amendments to the Election Act 2017, following its prior approval by the Senate.

After the budget’s passage, Finance Minister Ishaq Dar expressed his confidence that the concrete measures outlined in the budget will steer the country towards development. He credited Prime Minister Shehbaz Sharif’s political sagacity for achieving significant economic stability and acknowledged the guidance provided by the Prime Minister, cabinet members, coalition partners, and Parliamentary Leaders in prioritizing the budget.

Finance Minister Ishaq Dar also announced an honoraria equivalent to three months of basic pay for employees of the National Assembly, Senate, and other departments who performed duties during the budget session.

Defence Minister Khawaja Muhammad Asif expressed optimism in reaching an agreement with the International Monetary Fund (IMF) to restore economic stability. Minister for Human Rights Riaz Hussain Pirzada commended the government for introducing various incentives for farmers, highlighting the positive impact on the agriculture sector. Minister for Climate Change Sherry Rehman emphasized that the budget prioritizes the reconstruction and rehabilitation of flood-affected areas. She further expressed disappointment in the world’s neglect of the victims of the previous year’s disaster in Pakistan, while commending Prime Minister Shehbaz Sharif’s efforts to advocate for climate justice during a conference in Paris.

The National Assembly has adjourned and will reconvene on the 17th of next month at 5 p.m.

26/06/2023

New Tax Rates For Salary Income Applicable from July 01, 2023:

The National Assembly of Pakistan has passed the budget for the fiscal year 2023-24, introducing new tax rates for salary income.

These rates will be applicable for the upcoming tax year 2024, starting from July 01, 2023.

Under the recently approved amendment to Finance Bill 2023, individuals whose income falls under the category of ‘salary’ and exceeds seventy-five percent of their taxable income will be subject to the following tax rates:

01. Taxable income up to Rs600,000: The tax rate shall be zero percent.

02. Taxable income exceeding Rs600,000 but not exceeding Rs1,200,000: The tax rate shall be 2.5 percent of the amount exceeding Rs600,000.

03. Taxable income exceeding Rs1,200,000 but not exceeding Rs2,400,000: A fixed amount of Rs15,000, along with 12.5 percent of the amount exceeding Rs1,200,000, shall be applicable as tax.

04. Taxable income exceeding Rs2,400,000 but not exceeding Rs3,600,000: A fixed amount of Rs165,000, along with 22.5 percent of the amount exceeding Rs2,400,000, shall be applicable as tax.

05. Taxable income exceeding Rs3,600,000 but not exceeding Rs6,000,000: A fixed tax amount of Rs435,000, along with 27.5 percent of the amount exceeding Rs3,600,000, shall be applicable.

06. Taxable income exceeding Rs6,000,000: A fixed tax amount of Rs1,095,000, along with 35 percent of the amount exceeding Rs6,000,000, shall be applicable.

To provide clarity, the following tax card for salaried individuals is applicable for the tax year 2023:

Taxable Income | Rate of Tax

01. Up to Rs600,000 | 0%

02. Rs600,001 – 1,200,000 | 2.5% of the amount exceeding Rs600,000

03. Rs1,200,001 – 2,400,000| Rs15,000 + 12.5% of the amount exceeding Rs1,200,000

04. Rs2,400,001 – 3,600,000| Rs165,000 + 22.5% of the amount exceeding Rs2,400,000

05. Rs3,600,001 – 6,000,000| Rs435,000 + 27.5% of the amount exceeding Rs3,600,000

06. Rs6,000,001 – 12,000,000| Rs1,095,000 + 35% of the amount exceeding Rs6,000,000

07. Amount exceeding Rs12,000,000 | Rs2,955,000 + 35% of the amount exceeding Rs12,000,000

Taxpayers are advised to consult with tax professionals or visit the official website of the Federal Board of Revenue (FBR) for further information and to understand the implications of these new tax rates on their salary income.

26/06/2023

New Tax Rates for Business Individuals and AOPs Effective From July 01, 2023:

The National Assembly of Pakistan has approved new tax rates for business individuals and Association of Persons (AOPs) as part of the budget for the fiscal year 2023-24.

These rates as approved Finance Bill 2023 will come into effect from July 01, 2023, and will be applicable for the tax year 2024.

The updated tax rates for business individuals and AOPs are as follows:

01. Taxable income up to Rs600,000: The tax rate shall be zero percent.

02. Taxable income exceeding Rs600,000 but not exceeding Rs800,000: A tax rate of 7.5 percent of the amount exceeding Rs600,000 shall apply.

03. Taxable income exceeding Rs800,000 but not exceeding Rs1,200,000: A fixed tax of Rs15,000, along with 15 percent of the amount exceeding Rs800,000, shall apply.

04. Taxable income exceeding Rs1,200,000 but not exceeding Rs2,400,000: A fixed amount of Rs75,000, along with 20 percent of the amount exceeding Rs1,200,000, shall apply.

05. Taxable income exceeding Rs2,400,000 but not exceeding Rs3,000,000: A fixed tax amount of Rs315,000, along with 25 percent of the amount exceeding Rs2,400,000, shall apply.

06. Taxable income exceeding Rs3,000,000 but not exceeding Rs4,000,000: A fixed tax of Rs465,000, along with 30 percent of the amount exceeding Rs3,000,000, shall apply.

07. Taxable income exceeding Rs4,000,000: A fixed tax of Rs765,000, along with 35 percent of the amount exceeding Rs4,000,000, shall apply.

READ MORE: National Assembly Approves Budget 2023-24 with New Recommendations of Heavy Taxes

To provide clarity, the following tax card for business individuals and AOPs is applicable for the tax year 2023:

01. Where taxable income does not exceed Rs.600,000/-: 0 percent

02. Where taxable income exceeds Rs. 600,000 but does not exceed Rs. 800,000: 5 percent of the amount exceeding Rs. 600,000

03. Where taxable income exceeds Rs. 800,000 but does not exceed Rs. 1,200,000: Rs. 10,000 + 12.5 percent of the amount exceeding Rs.800,000

04. Where taxable income exceeds Rs.1,200,000 but does not exceed Rs. 2,400,000: Rs.60,000 + 17.5 percent of the amount exceeding Rs.1,200,000

05. Where taxable income exceeds Rs.2,400,000 but does not exceed Rs. 3,000,000: Rs. 270,000 + 22.5 percent of the amount exceeding Rs.2,400,000

06. Where taxable income exceeds Rs.3,000,000 but does not exceed Rs. 4,000,000: Rs.405,000 + 27.5 percent of the amount exceeding Rs.3,000,000

07. Where taxable income exceeds Rs.4,000,000 but does not exceed Rs. 6,000,000: Rs. 680,000 + 32.5 percent of the amount exceeding Rs.4,000,000

8. Where taxable income exceeds Rs.6,000,000: Rs. 1,330,000 + 35 percent of the amount exceeding Rs.6,000,000.

These revised tax rates aim to create a more equitable tax structure for business individuals and AOPs while generating additional revenue for the government.

26/06/2023

Up to 10% Advance Tax Imposed on Value of New Motor Vehicles:

The National Assembly of Pakistan on Sunday June 25, 2023 approved the budget 2023-24 with allowing up to 10 percent advance tax on new motor vehicles.

The house voted in favor of revising tax rates for registration of new motor vehicle in the country by provincial excise and taxation department and manufacturers of motor vehicles, which shall be applicable from July 01, 2023.

The approved Finance Bill, 2023 recommended amendment to Section 231B of the Income Tax Ordinance, 2001.

The new rate of advance income tax on new motor vehicles are as follow:

01. The motor vehicle with engine capacity up to 850cc: the advance tax amount shall be Rs10,000.

02. The motor vehicle with engine capacity between 851cc to 1000cc: the advance tax amount shall be Rs20,000.

03. The motor vehicle with engine capacity between 1001cc to 1300cc: the advance tax amount shall be Rs25,000.

04. The motor vehicle with engine capacity between 1301cc to 1600cc: the advance tax amount shall be Rs50,000.

05. The motor vehicle with engine capacity between 1601cc to 1800cc: the advance tax amount shall be Rs150,000.

06. The motor vehicle with engine capacity between 1801cc to 2000cc: the advance tax amount shall be Rs200,000.

07. The motor vehicle with engine capacity between 2001cc to 2500cc: the tax rate shall be 6 percent of the value.

08. The motor vehicle with engine capacity between 2501cc to 3000cc: the tax rate shall be 8 percent of the value.

09. For the motor vehicle with engine capacity above 3000cc: The tax rate shall be 10 percent of the value.

Provided that the value for the purpose of serial number 7 to 9 of the above, shall be in case of motor vehicle-

(i) imported in Pakistan, the import value assessed by the Customs authorities as increased by customs duty, federal excise and sales tax payable at import stage.

(ii) manufactured or assembled locally in Pakistan, the invoice value inclusive of all duties and taxes; or

(iii) auctioned, the auction value inclusive of all duties and taxes.

Provided further that in cases where engine capacity is not applicable and the value of vehicle is Rs5 million or more, the rate of tax collectible shall be 3 percent of the import value as increased by customs duty, sales tax and federal excise duty in case of imported vehicles or invoice value in case of locally manufactured or assembled vehicles.

10/06/2023

A promising budget for IT sector particularly SME status, highlights are:

1. IT sector now included in SME definition which means even on local services taxes as low as 0.25%, 0.5% and 0.75% can be opted under FTR

2. Being SMEs and opting for FTR they will also enjoy exemption from FBR AUDIT

3. Zero customs duty for certain IT equipment

imported by IT exporters up to 1% of export proceeds;

4. Exempt sales tax for certain IT equipment imported

by IT exporters up to 1% of export proceeds

5. 5% sales tax on services in Islamabad restored on IT & IT enabled services (previous 15%)

6. Sales tax filing requirement for IT exporters under FTR is now deleted

7. 0.25% on exports to continue till June 30, 2026

8. Concessionary tax rates for banks for advances to

IT sector

9. Freelancers exempted from filing of sales tax return under ICTO 2001

10. Auto issuance of exemption certificate for payment to non-residents

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10/06/2023

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Monday	09:30 - 18:30
Tuesday	09:30 - 18:30
Wednesday	09:30 - 18:30
Thursday	09:30 - 18:30
Friday	09:30 - 18:30
Saturday	09:30 - 18:30