Pakistan’s Finance Act 2013 implements the tax changes proposed in the budget for 2013. The changes came into force from 1 July 2013.
The Finance Act 2013 includes following tax provisions:
- Change the rules on the taxation of property income, from a final tax regime to a net income basis;
- Establish the rules for filing a wealth statement (beginning in tax year 2013);
- Establish new “slab rates” for individual income tax imposed on salaries and wages;
- Clarify that the collection of tax on trade financing and securities lending does not apply to mutual funds
- Establish an advance tax at a flat rate of 20% on distribution services; and
- Increase the sales tax rate from 16% to 17%, retroactively from 13 June 2013.
