On the other hand, a meeting of the Senate Standing Committee on Finance was held under the chairmanship of Senator Saleem Mandviwalla, in which the provisions related to sales tax in the Finance Bill 2024 were reviewed.
In particular, all sections falling under the purview of the new Section 99D were deferred to allow additional clarification during a later meeting, which empowers the government to levy additional tax on income, profits, and benefits specified for any of the last five tax years in the tax year 2023 and beyond.
The Standing Committee approved the inclusion of Section 113, which deals with a minimum tax on the income of specified persons, further, Section 146D, relating to the collection of dues under other laws, and Section 152, which deals with permission for applications for exemption certificates concerning payments to non-residents, were also approved.
Recognizing the importance of regulating foreign exchange outflows, the committee considered the proposal necessary to discourage unnecessary purchases online and maintain a stable financial environment, by increasing the withholding tax rate, the committee aims to protect the country’s economy as well as ensure balance in foreign exchange transactions.
