LAHORE: The Federal Board of Revenue (FBR) has increased withholding tax for non-filersor those not included in the Active Tax Payers List (ATL). This initiative has been taken to encourage people to file taxes.
A circular issued in this regard, non-ATL filers will be charged a tax of Rs 303 for withdrawing Rs 50,500 from the bank, while those withdrawing between Rs 55,000 and Rs 75,000 will have to pay a tax of Rs 450. However, Pakistani government agencies and foreign diplomats will be exempted from these taxes.
The circular further states that to discourage unnecessary withdrawal of foreign exchange reserves on credit/debit card payments,
The rate of withholding tax has been increased from 1 percent to 5 percent for persons on the list of active tax payers and non-filers. It has been increased from 2% to 10%.
It has been further stated that the tax rates will be increased by 18%, 24% and 30% for vehicles of 2001 cc, 2501 cc, 2500 cc engines, which are not included in the list of active tax payers.
Where the engine capacity is not applicable and the price of the vehicle is Rs 50 lakh or more, the rate of tax recovery will be 3% of the import price.
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