FBR Unveils Withholding Tax Rates During 2023-24 for ATL and Non-ATL Importers

FBR Unveils Withholding Tax Rates During 2023-24 for ATL and Non-ATL Importers

Karachi, August 2, 2023 – The Federal Board of Revenue (FBR) has released the withholding tax rates for the import of goods during the tax year 2023-24.

The new tax rates will be applicable to both importers who are on the Active Taxpayers List (ATL) and those who are not.

As per the provisions of Section 148 of the Income Tax Ordinance, 2001, the withholding tax rates for different categories of goods in the 12th Schedule are as follows:

1. Goods falling in Part-I of the 12th Schedule:

• ATL: 1%

• Non-ATL: 2%

2. Goods falling in Part-II of the 12th Schedule:

• ATL: 2%

• Non-ATL: 4%

3. Goods falling in Part-II of the 12th Schedule for Commercial Importers:

• ATL: 3.5%

• Non-ATL: 7%

4. Goods falling in Part-III of the 12th Schedule:

• ATL: 5.5%

• Non-ATL: 11%

5. Goods falling in Part-III of the 12th Schedule for Commercial Importers:

• ATL: 6%

• Non-ATL: 12%

6. Proviso 1(a) for Manufacturers falling in SRO 1125(I)/2011 of December 31, 2011:

• ATL: 1%

• Non-ATL: 2%

7. Proviso 1(b) for Pharma Products:

• ATL: 4%

• Non-ATL: 8%

8. Proviso 1(c) for CKD Kits for EVs (Electric Vehicles):

• ATL: 1%

• Non-ATL: 2%

9. Proviso 2 rates for mobile phones PCT 8517.1219:

• ATL: Rs70 to Rs11,500

• Non-ATL: Rs140 to Rs23,000

10. Proviso 2 rates for mobile phones PCT 8517.1211:

• ATL: Rs 0 to Rs5,200

• Non-ATL: Rs 0 to Rs10,400

FOR SCHEDULE AND PROVISOS PLEASE DOWNLOAD INCOME TAX ORDINANCE, 2001

The new withholding tax rates are aimed at regulating imports and ensuring proper tax collection. Importers on the Active Taxpayers List will enjoy lower tax rates, incentivizing compliance with tax regulations. On the other hand, non-ATL importers will be subject to slightly higher tax rates to encourage them to join the ATL and contribute to the country’s tax revenue.

Importers and stakeholders are advised to familiarize themselves with these new rates and comply with the applicable tax laws to avoid any penalties or legal issues. The FBR continues to take measures to streamline tax collection processes and promote a culture of tax compliance in the country.

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