The National Assembly approved the Finance Bill 2023 on 25 June 2023 with certain changes to the original finance bill that had been tabled on 09 June 2023. These changes mainly relate to enhancement of tax rates for individuals and partnerships earning more than PKR 2.4 million in a year, increase in advance tax on purchase/.sale of property, imposition of 5% FED on fertilizer, and withdrawal of many concessions proposed earlier including reduction in rate of minimum tax for listed companies, exemptions for agro-based SMEs and tax credit for newly constructed house.
After the assent of the President of Pakistan on 26 June 2023, Finance Act 2023 has been enacted. The amendments made would be effective from 01 July 2023 unless otherwise provided.
This publication contains a review of changes made in the Income Tax Ordinance, 2001, Sales Tax Act, 1990, Federal Excise Act, 2005 and The Customs Act, 1969 through the Finance Act, 2023.
This document contains the comments, which represent our interpretation of the legislation. We recommend that while considering their application to any particular case reference be made to the specific wordings of the relevant statute.