Follow Us on Google News
The federal government is contemplating a rise in the advance tax on cash withdrawals by non-filers from banks in the upcoming fiscal year budget.
Media reports suggest that this tax proposal has been broached during the ongoing negotiations with the IMF.
The Federal Board of Revenue (FBR) has proposed an increase in the advance tax rate from 0.6 percent to 0.9 percent for non-filers on cash withdrawals in the next year’s budget, a suggestion that has garnered approval from the IMF.
Introduced last year, the government had initially imposed a 0.6 percent advance tax on non-filers.
Sources indicate that if parliament sanctions this tax proposal, the FBR stands to collect over Rs. 15 billion annually in revenue from non-filers.
Furthermore, the FBR has suggested augmenting withholding tax for vehicles with engine capacities of 850cc or more. If ratified by parliament, not only will vehicle prices surge next year, but the FBR will also see increased tax revenue from auto consumers.
In addition to these measures, the government is contemplating imposing higher taxes on the sale and purchase of property plots valued at Rs. 50 million or more.
These proposals, among others, have been presented to the IMF by the FBR, pending approval. Subsequently, they will be submitted to Prime Minister Shahbaz Sharif for final endorsement.
