ISLAMABAD: Federal Board of Revenue (FBR) has estimated loss of Rs50 billion due to downward revision in of tax rates to salary income.
The FBR presented a detailed revenue position to the finance ministry after changes brought through Finance Act, 2018, Finance Supplementary (Amendment) Act, 2018 and Finance Supplementary (Second Amendment) Act, 2019.
The FBR said that in Finance Act, 2018 the rates of taxes upon salary income were considerably reduced and the threshold was increased from Rs.400,000 to Rs.1,200,000.
These changes brought about a substantial decrease in the withholding taxes collected through various government and private withholding agents.
“Revenue impact of this change remained Rs.32.4 billion during the period from July 2018 to February 2019,” the FBR said.
It is estimated that total revenue loss on this account would be around Rs.50 billion in the current fiscal year, the FBR added.