•  Tax on undistributed profits of companies. Current tax rate of 5% on profits, if distribution is less than 20% of after-tax profits, will be abolished from 2020 and onwards. This measure will especially encourage foreign companies to reinvest their profits in Pakistan in new activities and modernize their existing capital assets. Of course, the measure will not have an immediate budgetary impact.
•  Taxation of banking companies. Currently, the income of all banks is subject to a uniform tax rate of 35%. Now 'income' from advances to the following will be subject to reduced rate of 20% for the tax years 2020-2023: a) Micro and small enterprises; b) Low cost housing finance; and c) Farm credit. Upon implementation in 2020-2023, this measure will encourage the banking sector to provide additional credit to these sectors that are currently experiencing low investment.
•  A declining rate on non-bank corporate companies introduced earlier. The government has decided to continue with existing declining rate to come to 25% by 2023. This measure will not have any immediate budgetary impact.1
• Super tax on non-banking companies. For persons having taxable income of Rs. 500 million or above, the existing rate of super tax of 1% will be reduced to 0% in the tax year 2020. This measure will reduce the tax burden on companies and will promote investment activities. It will not have an immediate budgetary impact.  
• Provisional assessment for undeclared offshore assets. The process of provisional assessment, which was earlier limited to confiscated assets, has been extended to undeclared offshore assets. The government has established Directorate of International Operations to exclusively deal with such cases and to interact directly with foreign tax jurisdictions for exchange of information. This measure will cut delay in the recovery of taxes due from the offshore assets that are discovered by the government. 
• Advance tax on banking transactions. Advance tax on cash withdrawal and certain banking transactions is removed for filers, while on non-filers it remains unchanged at 0.6%. It will reduce the tax burden of filers and would encourage the non-filers to become tax filers. This measure will improve the growth of documented economy. 
•  Relaxation of restriction on purchase of motor vehicles by non-filers. The restrictions on purchase of locally manufactured motor vehicles having engine capacity not exceeding 1300CC is relaxed for non-filers. However, the withholding tax rate is increased by 50%. This measure is clearly a discouragement to filers. Moreover, this measure is introduced in response to pressure from local automobile industry, which is already benefiting from extreme policy protection despite their perpetual inefficiencies.
•   Restoration of presumptive tax regime for commercial importers. Now the commercial importers will be taxed under a final tax regime. This measure will facilitate commercial importers.
•  Withholding statements. The requirement to file monthly withholding statements has been replaced with bi-annual statements with immediate effect. The banking companies have also been absolved from the requirement of furnishing certain particulars of customers in relation to withholding tax statements in respect of cash withdrawals and profit on debt. This measure will ease doing of business.
•  Carry forward of capital losses. This will now be allowed on disposal of listed securities in subsequent tax year. This measure will improve the liquidity position of stock market players for the growth of stock market volumes and valuation.
•  Commission income of stock brokers. Tax now deductible on brokerage and commission income will be final tax. This measure will facilitate business of stock brokers, consequently stock market activities will flourish.
•   Levying advance tax. Advance tax is levied on import of mobile phone, purchase, registration and transfer of motor vehicles, and functions and gatherings. This measure will adversely affect the business of those engaged in these activities but will raise tax collection. 
•  Payment of refund through promissory note. The persons entitled to sales tax refunds can opt for acquiring sovereign negotiable instruments in the form of promissory notes (bonds) instead of cash. The government has decided to clear the backlog of accumulated refunds by issuance of the bonds at an annual profit of 10% with a maturity period of three years. FBR Refund Settlement Company (Pvt.) Limited is being established for issuance of bonds. These bonds can be freely traded in the local secondary (security) market. 
•    Increase of duty on imported motor vehicles. The rate of federal excise duty (FED) on the imported vehicles of 1800CC to 3000CC has been increased to 25%, whereas the rates on imported motor cars, sports-utility vehicles (SUVs) and other vehicles of 3000CC or above cylinder capacity, barring vehicles as designed for the transport of 10 or more persons, has been increased to 30%. On the other hand, FED on locally manufactured cars and SUVs with engine capacity of 1700CC and above has been fixed at 10%. These measures will discourage import of completely knockdown cars and promote domestic automobile industry.
• Rationalization of the tax structure for mobile phones. Taxation structure on mobile phones is complicated, which includes regulatory duty, sales tax, mobile levy, and withholding tax, etc. This structure creates extra burden on low-end mobile users and is regressive in nature. Keeping this problem in view, the tax structure is rationalized through collection of all duties/taxes on C&F values in terms of US Dollar instead of Pakistani Rupee and using uniform slabs.  
•  Reduction of duty on imported industrial raw materials/inputs. Customs duty is reduced/abolished on the import of 45 industrial raw materials and inputs. This initiative would help reduce the cost of production, especially for export-oriented industries and is thus a good measure for economic growth and employment generation.
•  Exceptions to restrictions as non-filers. These are given to a person holding a Pakistan origin card (POC), a national identity card for overseas Pakistani (NICOP) or non-resident Pakistani citizens holding international passports provided they produce a certificate from a scheduled bank of the receipt of foreign exchange remitted from outside Pakistan through normal banking channels during a period of 60 days prior to the date of booking, registration or purchase of motor vehicles. Or, in case of immovable property, prior to the date of registering, recording, or attesting transfer; or a legal heir acquiring immovable property in inheritance. As a result of this measure, diasporas will be encouraged to invest and maintain strong links with the home country.
Moreover, the provisions relating to advance tax collection on cash withdrawals are now inapplicable on filers and non-filers with respect to a PKR account if the deposits in the account are made solely from foreign remittances credited directly into such an account. This measure will encourage remittances through official channels.
• Incentives for special economic zones (SEZs). The government has introduced new sales tax incentives on import of plant and machinery by greenfield industrial enterprises in SEZs. To provide further incentives to the industrial companies set up in the SEZs, exemptions from customs duty and advance income tax on import of firefighting equipment are also given. This is an important first step to attract foreign investment in SEZs.
• Revamping of duty & tax remission for exporters (DTRE) and manufacturing bonds schemes. The government has shown its intention to revamp these two schemes for the promotion of SMEs’ exports. Besides, DTRE and Duty Drawback Schemes are being automated for fast clearance of imported raw materials and inputs. Once these schemes are revamped exporters’ liquidity and transaction-related problems will be resolved.