ISLAMABAD: On the advice of the Prime Minister, President Dr. Arif Alvi has signed the Tax Laws Second Amendment Ordinance 2022, which says that businessmen will have to pay sales tax on their electricity bills.
According to the Presidential Ordinance, after the increase in the prices of petrol and electricity, the federal government introduced a new mini-budget through the Presidential Ordinance, in which the fixed tax imposed on traders has been abolished and sales tax has been applied on electricity bills.
According to the Presidential Ordinance, instead of 42 billion rupees, 27 billion rupees will be charged on electricity bills from small traders, for which a five percent sales tax has been applied on electricity bills of traders up to 20 thousand rupees per month. The electricity bill will be subject to a 1.5 percent tax.
In the mini budget, taxes of 36 billion have been imposed on tobacco and cigarettes. The tax rate on tobacco has been increased from 10 rupees to 390 rupees per kg, while the duty on expensive branded cigarettes has been increased from 200 to 600 rupees. .
The tax on one thousand tier one cigarettes has been increased from five thousand nine hundred rupees to six thousand five hundred rupees. According to the ordinance, Pakistani citizens serving abroad were exempted from tax on allowances, while the income tax was mistakenly imposed on diplomats in the budget. The exemption of tax on Kuwait Foreign Trade Contract Company has been abolished and restored.
