Abolition announcement of Fringe Benefit Tax (FBT) awaiting
Fringe Benefit Tax (FBT), which was introduced in 2005, is going to be abolished very soon. Employees in upper middle clas are going to be hit by FBT abolition in coming weeks. Till now employees were enjoying car-banglow-driver, food vouchers, credit cards, club membership etc. on the companies account.
After abolition of FBT, employees will be liable to pay tax on each benefit they are taking from their employer. It will be an extra tax burden and will effect their savings drastically.
If Government announces tax cut for the full financial year, then employees have to see a large deduction from their salary in next four months of the current fiscal year and it would be big hit for them. On the other hand Government may consider the point, not to deduct for whole year instead only for next four months. If it is so, it will be a great relieaf for employees and they will have to pay tax only for next four months in place of whole year.
So emplyees have their fingers crossed and awaiting the announcement very eagerly.
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