Standing Committee approves 5% tax on income from unregistered shops, businesses and social media

Pakistan's National Assembly Standing Committee on Finance has approved a 5% withholding tax on non-registered shops and businesses with annual sales exceeding 20 million PKR, as well as on income earned from social media. The committee also expressed strong reservations regarding a 15-year tax exemption request for new aircraft and parts after PIA's privatization, postponing approval and calling for the advisor on privatization. Furthermore, the committee approved adding 116 more items across 21 categories to the sales tax law, expected to generate an additional 50 billion PKR annually. Tax exemptions were also approved for machinery imported for refinery upgrades and for the import of commercial ships and tankers. The committee is set to eliminate a 1% advance tax on exporters.