Tax Talk 2020
Increasing costs of living has made the life of common man very difficult. To reduce cost of medicines for general public, 19 items of raw materials and essential items of medicinal use are being proposed to be exempted from 3% import duties. Similarly, medicines for rare diseases like Wilson’s disease and Cystinosis disease are proposed to be exempted from import duties. Hemodialyzer is used in hydrolysis equipment for patients suffering from kidney failure. It is proposed that its raw materials and components may be allowed duty free import for local manufacturers. Through Finance Supplementary Second Amendment Act 2019 FED on cars 1700 cc and above was introduced @10%. Now it is proposed to enlarge the scope of FED and following slabs are being introduced as Cars from 0 to 1000cc at 2.5%, Cars from 1001cc to 2000cc at 5% and Cars from 2001cc and above at 7.5 %. Keeping in view the Government’s policy to create opportunities of employment for fresh graduates a new tax credit for persons employing freshly qualified graduates is proposed to be introduced. Persons employing fresh qualified graduates from universities or institutions recognized by the Higher Education Commission would be given a tax credit equal to the amount of annual salary paid to such graduates. The tax credit shall be deducted from the tax payable by such persons. This tax credit would be in addition to the expenditure claimed by businesses on payment of salary to their employees. Persons, who have graduated after 01 July, 2017 would be treated as fresh graduates for claim of tax credit.