Pakistan introduces automated system for withholding tax payments

Jul 24

Budget 2022-2023, Taxation

Pakistan introduces automated system for withholding tax payments

ISLAMABAD: Pakistan has introduced an automated system for real-time payment for withholding tax. The system has been introduced through the Finance Act, 2022 by making amendment to the Income Tax Ordinance, 2001. The Federal Board of Revenue (FBR), the apex tax collecting agency of Pakistan, issued Income Tax Circular No. 15 of 2022/2023 to explain […]

by Anjum Shah

Minimum tax for commercial importers enhanced: FBR

Jul 24

Budget 2022-2023, Taxation

Minimum tax for commercial importers enhanced: FBR

ISLAMABAD: The Federal Board of Revenue (FBR) said that withholding tax for commercial importers has been enhanced to 3.5 per cent from 2 per cent. The FBR issued Income Tax Circular No. 15 of 2022/2023 to explain important amendments introduced through Finance Act, 2022 to the Income Tax Ordinance, 2001. READ MORE: Tax through electricity […]

by Anjum Shah

FBR mulls reducing more withholding tax provisions

Sep 15

Taxation

FBR mulls reducing more withholding tax provisions

ISLAMABAD: Federal Board of Revenue (FBR) is considering to withdraw more withholding tax provisions as it has already abolished a number of provisions. The FBR said it is contemplating reduction in number of withholding tax lines without compromising the documentation contribution of these taxes. “Nine withholding taxes have already been abolished and further reduction is […]

by Hamza Shah

Withholding tax up to 30% to be collected on profit from national saving schemes

Jul 14

Taxation

Withholding tax up to 30% to be collected on profit from national saving schemes

ISLAMABAD: An important change has been made to income tax rate on profit from national saving scheme through Finance Act, 2021. A person not appearing on the Active Taxpayers List (ATL) is liable to pay 30 per cent as withholding income tax on profit from saving schemes. The Central Directorate of National Savings (CDNS) in […]

by Anjum Shah

Additional tax on transfer of unregistered motor vehicles to continue

Jul 4

Taxation

Additional tax on transfer of unregistered motor vehicles to continue

ISLAMABAD: The levy of withholding tax to discourage on money on transfer of motor vehicles will continue beyond July 01, 2021. The Federal Board of Revenue (FBR) in an explanation to Finance Act, 2021 said that application of withholding tax on motor vehicles transferred without registration will continue during current fiscal year and onwards. The […]

by Anjum Shah

Withholding tax rates for industrial, commercial consumers revised

Jul 4

Taxation

Withholding tax rates for industrial, commercial consumers revised

ISLAMABAD: The Federal Board of Revenue (FBR) has said that withholding tax rates for industrial and commercial consumers have been revised. Withholding tax on domestic electricity consumption was collected at the flat rate of 7.5% if the monthly domestic electricity bill exceeded Rs. 75,000. In order to promote documentation and broadening of tax base this […]

by Anjum Shah

Additional withholding tax imposed on cars sold without registration

Jun 16

Automotive, Budget 2021-2022, Taxation

Additional withholding tax imposed on cars sold without registration

KARACHI: The application of withholding tax on cars / motor vehicles that are sold without registration shall pay additional withholding income tax. According to the Finance Bill, 2021 the withholding tax in addition to registration/transfer would be applicable and the same would be collected by the motor vehicle registration authority of Excise and Taxation Department […]

by Anjum Shah

Budget 2021/2022: Duty, taxes abolished on cars up to 850cc

Jun 11

Automotive, Budget 2021-2022, Taxation

Budget 2021/2022: Duty, taxes abolished on cars up to 850cc

ISLAMABAD: The government has announced abolishing duty and taxes on locally manufactured and imported cars with engine capacity up to 850cc to enable low earning families to afford motor vehicles. Finance Minister Shaukat Tarin while presenting federal #budget 2021/2022 on Friday announced duty and tax incentives for sale and import of motor cars with engine […]

by Anjum Shah

Withholding tax collection grows by 91pc as FBR refuses active status to late return filers

May 9

Taxation

Withholding tax collection grows by 91pc as FBR refuses active status to late return filers

KARACHI: Collection of withholding tax has registered 91 percent increase to Rs11.5 billion during April 2021 as compared with Rs6 billion in the same month of the last year, according to statistics of Large Taxpayers Office (LTO) Karachi. The phenomenal growth has been attributed to significant decline in number of active taxpayers for tax year […]

by Faisal Shah

Withholding tax collection from new car registration declines by 39pc in TY2020

Apr 11

Automotive, Taxation

Withholding tax collection from new car registration declines by 39pc in TY2020

ISLAMABAD: The collection of withholding tax on registration of new cars has declined by around 39 percent in tax year 2020 due coronavirus pandemic that has lowered the sales of locally assembled motor vehicles. According to details released by Federal Board of Revenue (FBR) the collection of withholding tax fell to Rs5.88 billion in tax […]

by Anjum Shah