The federal finance ministry has directed the Federal Board of Revenue (FBR) to issue notification to collect funds for Operation Zarb-e-Azb in super tax net.
The Federal Board of Revenue (FBR) decided to collect super tax from those who annually earn Rs 500 million or more profit to fund ongoing military operation in tribal area to eliminate terrorism from the country.
Earlier, the senate standing committee on finance and revenue had suggested the government that it should lower the annual income threshold for charging super tax from Rs 500 million to Rs 300 million.
The finance ministry also directed the FBR to impose 4 per cent tax on income of banks and 3 per cent on income of other companies and individuals from July 1. In the budget 2015-16, the federal government has proposed 4 percent, one-time, super tax on banking companies and 3 percent on individuals and other companies having an annual income of Rs 500 million. It has estimated earning Rs 22 billion from the levy.
The government has estimated the cost of rehabilitation of internally displaced persons and security enhancement at over Rs 180 billion amid forces entered last phase of Zarb-e-Azb to root out terrorism. It has allocated Rs 100 billion in the budget including Rs 55 billion given for rehabilitation of TDPs.
While addressing the post-budget press conference, Finance Minister Ishaq Dar had said that only 190 individuals and companies were earning more than Rs 500 million annually. He said out of those, 155 are companies while the individuals were less than five.
