Punjab govt likely to announce tax relief for 23 sectors amid COVID-19 crisis

LAHORE: The Punjab government has completed preparations to unveil its provincial budget 2020-21 on Monday (tomorrow) and the provincial authorities are likely to announce tax relief for 23 sectors to help to fight COVID-19, ARY News reported on Sunday.

The Punjab government is expected to provide a big financial relief to 23 sectors to cope with the challenges of COVID-19. The government gave approval to various recommendations tabled for the upcoming budget.

The volume of upcoming Punjab Budget, which will be tax-free, is proposed above Rs2220 billion with the allocation of Rs1780 billion for current expenditure, sources said.

The financial experts also recommended increasing allocations for development projects as the government planned to allocate a total Rs337 billion funds for the development schemes besides increasing allocations for South Punjab as compared to the budget of the previous fiscal year.

Sources told ARY News that 13 sectors will be given a direct tax relief facility by the provincial authorities. A record reduction will be made of sales tax on services and the payment of property tax in two instalments, sources added.

Moreover, 10 sectors will get the benefit of tax relief facilities after coming to the tax net.

Read: Punjab budget to be presented on Monday

It is recommended to end 16 per cent tax on the services of doctors and bedroom charges of hospitals besides concluding 16 per cent taxation on health insurance. The taxation up to 16 per cent for booking rooms at hotels and guest houses is also likely to be reduced up to 5 per cent.

The tax amount will be set up to 5 per cent for marriage halls, event lawns, gymnasiums, fitness centres, property dealers, rental car services, cable operators, automobile dealers and apartment management.

The limit of tax for property builders and developers will be set up to 5 per cent for the registration into the tax net. The same limit would be announced for the skin and laser clinics that were being registered under the tax net.

In order to facilitate the citizens, the Punjab finance department suggested collecting the property tax in two instalments.

The recommendations will be presented before the provincial cabinet and later to the Punjab Assembly for final approval.

According to the spokesperson of the Punjab government, the provincial budget 2020-21 will be tax-free and people-friendly which would be focused on bringing improvements in health infrastructure and anti-coronavirus efforts.