The government has introduced several significant proposals in the upcoming fiscal year’s budget, focusing on tax base expansion and revenue generation.
The budget document states that raising the tax rate on interest income from 15% to 20% by 5% is one of the main ideas.
Passively earned income will be especially affected by this decision, however national savings plans will not be affected by this tax increase.
Additionally, the government has suggested taxing online enterprises in an effort to capitalize on the expanding digital economy.
Businesses using e-commerce platforms will have to submit monthly transaction data and tax reports, and these platforms will be obliged to impose taxes on goods and services purchased online.
A 25% tax on income from loans is another important proposal. Nonetheless, the tax rate on share earnings will not alter, offering stock market investors some respite.
Additionally, the administration has suggested taxing those under 70 who receive sizable pensions.
The proposal states that annual receipts over Rs 10 million will be subject to a 5% tax.
To ensure that the burden is placed on higher-income earners, low- and medium-income retirees will not be subject to this tax.
