Budget 2020-21 Pakistan

This tax memorandum gives an overview of the country’s economy for the financial year 2020-2021.

BROAD PRINCIPLES OF TAXATION PROPOSALS

The proposals for the budget 2020-21 are mainly based on the following principles: –

1. Least burden on poor and middle class
2. Simplification of Taxation

• Covid-19 Response to ease the business

1. E-audit
2. Second phase of withdrawal of exemptions to further eliminate discriminatory tax exemptions and concessions.
3. Expand the scheme of differential taxation for filers and non‐filers for penalizing non‐compliance without adding any further burden on the compliant.

• Customs tariff be rationalized to reduce both the number of slabs and the maximum duty rate.
• Reviewing tax laws and procedures to cut down on discretion.

1. Removal of sector distortions in domestic taxes.
2. Measures for broadening of the tax base and documentation of economy.
3. Increasing the share of the direct taxes.

TAX MEMORANDUM FINANCE BILL 2020-21,

Fazal Mahmood & Company (Chartered Accountants) is pleased to present this tax memorandum, which is primarily aimed to help in understanding the impact of the Budget changes that are brought by the Finance Bill 2020-21 relating to Income Tax, Sales Tax Laws, Federal Excise Duty and Customs Duty. It is suggested that in order to understand the precise effect of a particular amendment, reference should preferably be made to the relevant wordings of the Act when passed. The bill was presented in the Parliament of Pakistan on June 12, 2020. Amendments and reshufflings are possible before its approval from National Assembly. It is suggested that changes should not generally be acted upon without first obtaining appropriate professional advice. This has always been a pleasure to be of service to our clients. It should neither be regarded as comprehensive nor sufficient for making decisions, nor should it be used in place of professional advice. The Firm does not accept any responsibility for any loss arising from any action taken or not taken by anyone using this publication.

Regards,

Fazal Mahmood & Company

Chartered Accountants

Attachment: 

FMC Budget 2020-2021

Finance-Bill-2020

Salient Feature 2020-21

Notes-on-Clauses FBR