ISLAMABAD: President Dr Arif Alvi has signed Tax Laws (Second Amendment) Ordinance, 2022. According to a statement issued by President's Office, Dr Alvi gave approval to Ordinance on advice of prime minister under Article 89(1) of constitution. Under Ordinance, amendments have been made to Sales Tax Act 1990, Income Tax Ordinance 2001, Federal Excise Act 2005 and Finance Act 2022.

The amendment includes taxes worth Rs 36 billion were imposed on cigarettes and tobacco, tax rate on tobacco increased from Rs 10 to Rs 390 per kg, duty on branded cigarettes increased within a range of Rs 200 to Rs 600, taxes on cigarette brands falling under tier-I increased from Rs 5,900 to Rs 6,500, taxes on cigarette brands falling under tier-II increased from Rs 1,850 to Rs 2,050, instead of Rs 42 billion traders will be charged Rs 27 billion on electricity bills, 5 percent Sales Tax will be applicable on small traders whose monthly electricity bill is Rs 20,000, bills of traders which are more than Rs 20,000 per month will be applicable to a 7.5 percent tax, Overseas Pakistanis will be exempted from taxes on any allowances, taxes exempted on an agricultural diesel engine, agricultural machinery, motor vehicle used for public transportation and carriage of goods, taxes are also exempted on a motor vehicle held in Pakistan by a foreign diplomat or a foreign diplomatic mission, Income Tax on diplomats "mistakenly imposed" in federal budget abolished and tax exemption restored on Kuwait Foreign Trading Contracting and Investment Company.

Published in The Daily National Courier, August, 23 2022

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