Karachi (BR): Ministry of Law and Justice legally endorsed the Federal Board of Revenue’s measures to impose capital gains tax (CGT) on sale of property, confirming that the federal government has the authority to collect gains on the sale of immovable property after the passage of 18th Amendment.
Deputy Draftsman, Ministry of Law and Justice informed the committee that the income tax law for the Gilgit Baltistan has been vetted by the Division and is also being applicable in the said area. On the same issue, Chief Income Tax Policy FBR stated that the FBR has drafted the Income Tax Law for the Gilgit Baltistan on the pattern of the Income Tax Ordinance 2001.
Members of the Committee also raised the issue of applicability of income tax laws in all parts of the country including AJ&K, Gilgit Baltistan, FATA and PATA. The officials of the FBR and finance ministry informed the committee that President has powers to extend the jurisdiction of any tax law in FATA, Governor Khyber Pakhtunkhawa has the powers to extend the tax laws in PATA, similarly, AJ&K Council and Gilgit Baltistan Council have the powers to allow applicability of Pakistan”s tax laws in their jurisdictions. Chairperson Nasreen Jalil was of the opinion that tax laws should be equally applicable in all parts of the country without any discrimination.
ISLAMABAD (News): The four federating units will get the major share of 70 percent in the net divisible pool, leaving only 30 percent for the federal government, according to a presentation prepared by the ministry of finance on strategy for the Budget 2012/13.
The provinces will have additional transfer of Rs800 billion from centre under the 7th National Finance Commission Award, it said.
Of the 30 percent revenue receipts from the divisible pool, the central government will fund the defence sector along with going for debt servicing, spending in pay and pension, sharing in the public sector development programme and extending the subsidies in energy, food sector and giving bailout packages to the public sector entities.
Mentioning about the initiatives taken in the last four years, the presentation says that the government has extended Rs1.122 trillion as subsidy to the power sector, Rs104 billion to the petroleum sector, Rs110 billion to fertiliser and Rs137 billion to food. In the period under review, massive resources have been provided to less developed areas such as Rs120 billion to FATA, AJK Rs72 billion and Gilgit-Baltistan Rs52 billion.