BDO Commentary on the Finance (Supplementary) Bill, 2023

The Federal government has introduced direct and indirect taxation measures for complying with the conditions of the IMF program through issuance of two SROs on February 14, 2023 and thereafter presenting Finance (Supplementary) Bill, 2023 [The Bill] in both the Houses on February 15 2023.  

Highlight of the taxation measures introduced are as under:

1. Adjustable advance tax on purchase of private limited company or public unlisted company shares at the rate of 10% of the fair market value of such shares 
2. Collection of advance tax on functions and gathering
3. Increase in general sales tax rate from 17% to 18%
4. Increase in locally produced coal and imported mobile phones of specific categories
5. Increase in FED on certain goods which includes cigarettes, aerated water, cement and sugary drinks

The above measures proposed through the Bill shall come into force on the next day of enactment as an Act when assented by the President of Islamic Republic of Pakistan.   

Please find enclose our Memorandum in this respect.

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