ISLAMABAD, Pakistan: The Federal Minister for Finance Senator Muhammad Ishaq on Friday said that in order to promote digital payments through credit cards at restaurants, the government has reduced the tax ratio from 15% to 5%.
Delivering a Federal Budget 2023-24 speech in the National Assembly, he said that the proposed tax reduction would cover the restaurants falling within the limit of Islamabad Capital Territory (ICT).
lucrative incentives introduced for Overseas Pakistanis
Separately, the federal government has introduced many lucrative incentives for Overseas Pakistanis in the federal budget 2023-24 to increase remittances.
In his budget speech, the minister said that remittances were important source of reserves as remittances were 90 percent of the total foreign reserves.
The finance minister said that the government had introduced incentives for those Overseas Pakistanis who send their remittances through formal channels.
The minister said that the government had abolished 2 percent final tax on purchase of immovable property through foreign remittances.
Ishaq Dar said that the government has introduced a new card namely Diamond Card in Remittances Card category for those who would send more than US$ 50,000 foreign remittances annually.
The Diamond Card beneficiaries would enjoy one non-prohibited bore license, Gratis Passport, preferential access to Pakistani Embassies and counsels and fast track immigration service at Pakistani Airports, he added.
The minister said that a new scheme of prizes for Remittances Card Holders would also be introduced.
