The rate of tax has been increased to Rs 3,500 per Hajji in the Federal budget 2013-14 that has further increased the amount to Rs 5,000 per Hajji in the year 2014. This is the result of the amendments made in the Second Schedule of the Income Tax Ordinance, 2001.
According to the Income Tax Circular of Federal Board of Revenue which was issued to explain the income tax amendments introduced in the Federal report. It has been made compulsory for the Hajj operators to pay the tax at the rate of Rs 3,500 per Hajji for the year 2013 and Rs 5,000 per Hajji for the year 2014.
In the Income Tax Ordinance second schedule 200 the amendment made in Part-I Sub-Clause 53A has been deleted. Now the privilege of concessional passage provided by airlines to its employee or to the members of employee family will be included in taxable income of the employee.
In Part-I a new Clause 58A has been included according to which the income of educational institutions will be run by a non-profit organization which is also mentioned in Sub-Section 36 of Section 2 of the Income Tax Ordinance, 2001.this Clause serving only for educational purposes and not for purposes of profit is removed.
In Part-III of Clause 1 a condition has been added that the reduction in tax liability is available at 2.5 percent and it would not exceed the amount equal to the income received by pilots, flight engineers, Pakistani Airlines or Civil Aviation Authority, and submarine allowance by the officers of the Pakistan Navy, navigators of Pakistan Armed Forces, junior commissioned officers or other ranks of Pakistan Armed Forces.
In Clause 2 of Part III reduction in tax accountability on income from salary equal to 75% has been reduced to 40% if a full time teacher is employed in non-profitable educational institutions recognized by HEC or a board of education or a university recognized by the HEC and it also includes government training institutions and government research institution.
It is further made clear that a full time teacher is a person who is employed purely for teaching and is not performing any administrative job like principal, vice-chancellor, chairman, headmaster, controller, directors etc. Similarly a person purely employed for research job in research institution and is purely working for research work.
This addition and exemption of different Clauses has created great complexity and confusion among people and the sudden increase in Tax is also an area which is being questioned by the pilgrims. It is unacceptable but they are left with no choice because it has already been implemented. The people are protesting against it but there seem to be no possibility of change. Therefore the pilgrims are looking for hajj packages that can at least provide them comfort and suitable accommodations. If you are also planning to perform hajj this year then you must visit our website for detailed information. Our website is http://euroafricatravel.co.uk