In a development that may impact non-tax filers, the upcoming budget proposes a double advance income tax on imported cars. The move aims to generate additional revenue and encourage tax compliance in the automobile sector.
Furthermore, there is a proposal to replace the current practice of levying withholding tax based on engine capacity with withholding tax on purchase receipts. This shift in taxation is intended to streamline the process and ensure a fairer tax assessment.
The new budget also includes plans to increase regulatory and additional customs duties on imported vehicles. These measures are aimed at promoting domestic production and reducing the country’s reliance on imports.
According to official documents, the government has set a target of $30 billion for domestic exports in the next fiscal year. On the other hand, imports are estimated to reach $58.70 billion, resulting in a projected trade deficit of $28.70 billion.
Additionally, the documents indicate that the current account deficit is expected to be $6 billion, accounting for approximately -1.7% of the GDP.
These proposed changes in taxation and import duties reflect the government’s efforts to address fiscal challenges, promote local industries, and ensure a more equitable tax system. The impact of these measures on the automotive industry and overall economic dynamics will become clearer once the budget is implemented.