Committee may recommend reduction in withholding tax provisions

Jan 16

Taxation

Committee may recommend reduction in withholding tax provisions

ISLAMABAD: A committee constituted to simplify taxation procedures may recommend a reduction in the number of withholding tax provisions and measures for enhancing the revenue collection. Sources in the Federal Board of Revenue (FBR) said that a technical committee was constituted on September 17, 2020, for simplification of all taxation procedures. They said that the […]

by Mrs. Anjum Shahnawaz

Withholding tax from cash withdrawal plunges by 52 percent; remains in top 10 revenue spinners

Oct 6

Taxation

Withholding tax from cash withdrawal plunges by 52 percent; remains in top 10 revenue spinners

ISLAMABAD: The collection of withholding tax has sharply declined by 52 percent during tax year 2020 as the tax was abolished under this head for filers of income tax returns. According to official statistics released by the Federal Board of Revenue (FBR) for tax year 2020, the collection of withholding tax from cash withdrawal fell […]

by Mrs. Anjum Shahnawaz

Period for filing withholding tax statement reduced

Jul 11

Taxation

Period for filing withholding tax statement reduced

ISLAMABAD: Withholding agents are required to file statement of deduction and collection on quarterly basis instead bi-annual. The change has been brought through Finance Act, 2020 by amending section 165 of the Income Tax Ordinance, 2001. Sources in Federal Board of Revenue (FBR) said that the change was brought on the proposal of business community […]

by Faisal Shahnawaz

Exemption from withholding tax on foreign remittances may not practical for banks

Jun 24

Budget 2020-2021

Exemption from withholding tax on foreign remittances may not practical for banks

KARACHI: The government has granted withholding tax exemption on transfer of foreign remittances to Pak Rupee accounts. But tax experts said that bifurcating transactions for banks may not be practical. Overseas Investors Chamber of Commerce and Industry (OICCI) said that currently withholding tax is applicable on certain banking transactions executed by the persons not appearing […]

by Mrs. Anjum Shahnawaz

Details of transactions exempted from withholding tax

Jun 15

Budget 2020-2021, Taxation

Details of transactions exempted from withholding tax

ISLAMABAD: The Finance Bill, 2020 has proposed to withdraw withholding tax collection on nine different types of transactions under Income Tax Ordinance, 2001. According to budget commentary issued by PwC A F Ferguson, as part of reforms for ease of doing business, the government has proposed to withdraw following withholding tax provisions, which in government’s […]

by Mrs. Anjum Shahnawaz

Online verification of tax withheld should be available

Jun 8

Budget 2020-2021, Taxation

Online verification of tax withheld should be available

KARACHI: Tax practitioners have urged the Federal Board of Revenue (FBR) to ensure verification of tax withheld on the IRIS portal in order to facilitate taxpayers in making adjustment or claiming refunds. Pakistan Tax Bar Association (PTBA) submitted proposals for budget 2020/2021 saying that withholding tax regime should be simplified by reducing the categories of […]

by Mrs. Anjum Shahnawaz

New slab for withholding tax on motor vehicle purchase recommended

May 25

Budget 2020-2021, Taxation

New slab for withholding tax on motor vehicle purchase recommended

KARACHI: Regional Tax Office (RTO) – II Karachi has recommended revision in slab for withholding tax collection on purchase of new motor vehicles from next fiscal year. The RTO-II Karachi in its proposals for budget 2020/2021 suggested revision in existing slabs for withholding tax collection on motor vehicles. The RTO-II Karachi proposed to create a […]

by Mrs. Anjum Shahnawaz

FBR proposed to ensure CPR for deposited withholding tax

May 18

Budget 2020-2021, Taxation

FBR proposed to ensure CPR for deposited withholding tax

KARACHI: Federal Board of Revenue (FBR) has been advised to ensure Computerized Payment Receipt (CPR) for deposited withholding tax in order to avert chances of revenue leakages. Pakistan Business Council (PBC) in its proposals for budget 2020/2021 submitted to the FBR, said that presently the taxpayer has to deposit the withholding tax deducted fortnightly, i.e. […]

by Mrs. Anjum Shahnawaz

FBR urged to abolish withholding tax on telecom services

May 14

Budget 2020-2021, IT & Telecom

FBR urged to abolish withholding tax on telecom services

KARACHI: Federal Board of Revenue (FBR) has been recommended to abolish withholding tax on telecom services considering the rate is too high and a large segment of people living below poverty line. Overseas Investors Chamber of Commerce and Industry (OICCI) in its proposals for budget 2020/2021 said that currently, telecommunication services in Pakistan are subject […]

by Mrs. Anjum Shahnawaz

FBR proposed to eliminate distortion in withholding tax on dividends from equity investments

May 11

Budget 2020-2021, Stock & Commodity

FBR proposed to eliminate distortion in withholding tax on dividends from equity investments

KARACHI: Federal Board of Revenue (FBR) has been proposed to rationalize of withholding tax on dividends as higher rate from equity investments discourage investment in the capital market. Pakistan Stock Exchange (PSX) in its proposals for budget 2020/2021 submitted to Federal Board of Revenue (FBR) said that withholding tax on profit from debt instruments is […]

by Faisal Shahnawaz