The government has unveiled several key proposals in the budget for the upcoming fiscal year, aimed at broadening the tax base and generating additional revenue.
According to the budget document, one of the major proposals includes increasing the tax rate on interest income by 5%, from 15% to 20%. This decision will specifically apply to passively earned income, while national savings schemes will be exempt from this tax hike.
In a bid to tap into the growing digital economy, the government has also proposed imposing taxes on online businesses. E-commerce platforms will be required to levy taxes on goods and services ordered digitally, and businesses operating on these platforms will have to submit monthly transaction data and tax reports.
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Another significant proposal includes a 25% tax on income earned on loans. However, the tax rate on profits from shares will remain unchanged, providing some relief to investors in the stock market.
The government has also proposed taxing individuals receiving large pensions under the age of 70. According to the proposal, a 5% tax will be imposed on annual receipts exceeding Rs10 million. However, low- and medium-income pensioners will be exempt from this tax, ensuring that the burden falls on higher-income earners.
