Pakistan Budget 2004-05

Abstract:

Pakistan Budget 2004-05 introduced many relief measures in the areas of Income Tax and Sales Tax. At the same, time the budget also proposed some revenue measures along with tariff rationalization measures.

Pakistan Budget 2004-05 introduced significant relief measures in the area of Taxation. The budget also tried to simplify some measures and in the area of custom, it included some Tariff Rationalization Measures.

Relief Measures introduced by Pakistan Budget 2004-05 in the area of Income Tax and Sales Tax:

In this budget, the basic threshold of income was raised to Rupees 100,000 from the level of Rupees 80,000.

The budget proposed to withdraw Withholding Tax on machinery import.

The budget proposed that the retailers who generate annual turnover up to Rupees 5 million, should pay 0.75% of their annual turnover as Final Tax.

The budget offered Sales Tax Exemption facility for import of harvesters, tractors and bulldozers in order to provide support to the agricultural sector.
This 2004-05 budget introduced new reduced level of Activation Charge for Cellular Phones.
This budget proposed to abolish Turnover Tax Scheme. The budget raised the tax exemption limit to Rupees 5 million both for the manufacturing sector and retail sector in order to promote SMEs.

Revenue Measures introduced by Pakistan Budget 2004-05:

The budget proposed levying of Central Excise Duty on advertisement on cable and CCTV(Closed Circuit Television).
It also introduced levy of Central Excise Duty on import of edible oil.

Tariff Rationalization Measures introduced by Pakistan Budget 2004-05:

In this budget, custom duty on the import of industrial raw materials was rationalized.
The budget introduced rationalization of custom duty structure in the automobile sector of the country.