The Federal Board of Revenue (FBR) will issue a Statutory Regulatory Order (SRO) to increase withholding tax rate from 10 to 15 percent for non-filer service providers and enhance withholding tax rates by 1.5 percent for all types of non-filer importers.
Sources told Business Recorder here on Tuesday that at present withholding tax rate for service providers is 10 percent. The FBR will notify the increase in rate from 10 to 15 percent for non-filers. In case of importers, at present withholding tax rates from 1 to 5.5 percents are applicable. The rates for importers would be increased by 1.5 percent in each category. The increase of 1.5 percent would be applicable in all categories of importers (non-filers) which are presently subjected to withholding tax rates from 1 to 5.5 percent.
In this regard, the FBR will issue a notification. The Economic Co-ordination Committee (ECC) of the Cabinet on a summary forwarded by the Federal Board of Revenue had approved higher rates of withholding taxes for importers and service providers who are non-filers of income tax returns, in order to encourage return filing and documentation of economy. The rates proposed to be revised are in respect of non-filers only. The rates of WHT shall remain unchanged for compliant taxpayers who file their Returns regularly and their names appear on Active Taxpayers List. The distinction of filer and non-filer is being extended to these sectors to increase cost of doing business for non-filers and to encourage compliant-taxpayers.
Comments
Comments are closed.