Govt mulls super tax relief for large companies in new budget

(Web Desk): The federal government is preparing to reduce the super tax for large companies in the upcoming budget, according to Federal Board of Revenue (FBR) sources.

Sources say that companies earning an annual profit of Rs150 million will continue to be exempt from the super tax. For companies earning up to Rs200 million annually, the super tax rate may be reduced from 1% to 0.5%. For those with profits up to Rs250 million, the rate may decrease from 2% to 1.5%.

Companies earning up to Rs300 million annually are likely to continue paying a 3% super tax, while those with profits exceeding Rs300 million are expected to remain subject to a 4% super tax.

FBR sources added that there is currently no plan to reduce the income tax rate for the corporate sector.

Additionally, the upcoming budget may include a 5.5% increase in sales tax on 850cc vehicles. A reduction in additional regulatory duties is expected on over 3,500 imported goods and raw materials.

There may also be a cut in withholding tax on imported raw materials for the local industry. A 2% to 5% reduction in additional customs duty on imported goods is anticipated. The government is considering either reducing or abolishing withholding tax on imported raw materials for local industries. The construction sector may also see a relaxation in withholding tax on raw materials in the new budget.