Banking instruments of non-filers: FBR collects Rs 5.2 billion from WHT in Q1

The Federal Board of Revenue (FBR) has collected Rs 5.2 billion from withholding tax on banking instruments of non-filers during first quarter of 2015-16. Sources told Business Recorder here on Friday that the government had imposed 0.6 percent withholding tax on banking instruments of non-filers in budget (2015-16). Through a Presidential Ordinance, the rate was reduced from 0.6 to 0.3 percent till September 30.
Later, the government announced extension of one month in payment of concessional rate of 0.3 percent withholding tax on all banking instruments on expiry of Ordinance on September 30. Now, the 0.3 percent tax would remain applicable till October 31, 2015. The FBR is compiling revenue impact of the budgetary measures announced in 2015-16. So far, the FBR has collected data of Rs 5.2 billion from banking transactions of non-filers. The FBR had estimated Rs 35 billion from adjustable advance income tax on banking instruments and other modes of transfer in case of non-filers; Rs 24 billion from super tax imposed on rich individuals, association of persons (AOPs) and companies and Rs 23 billion from increased cost of non-compliance with tax laws. According to sources, the actual estimates of withholding tax collection from non-filers are much higher as compared to the FBR's projection of Rs 35 billion during 2015-16.