Pakistan Business Council (PBC) has suggested a higher withholding tax for non-filers in the upcoming budget for the fiscal year 2018-19.
PBC submitted its recommendations report to the Federal Board of Revenue specifying the incentives for filers. The Council’s report further added that Pakistan needs to document its economy as well. The report recommended increasing the efforts to document the economy through the data collected by FBR.
The Council appreciated the government’s move of increased WHT for non-filers. However, they in their report recommended that the WHT for non-filers should be at least three times more than that for filers.
The increased withholding tax rate for non-filers will provide clear incentives to those who file their returns. It will further encourage the non-filers to file their tax returns as well.
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The report also added that FBR can increase the tax base and determine WHT for non-filers by collecting data from different sources. This includes data from the real estate sector and NARDA that will help in documenting the transactions involving property transfers.
The real estate sector is a mega-market that goes overlooked while computing the taxes. FBR can significantly increase the revenue base by documenting and taxing this sector, the report recommended.
Budget Date
According to the reports, the Federal Budget for Financial Year 2018-19 is expected to be presented on April 27. The government recently announced to significantly cut income tax rates as well. However, experts are predicting that this will decrease the already narrow tax base of Pakistan and will result in Rs 90 billion annual loss to the economy.
The government, on the other hand, is hoping to increase the tax base through the amnesty scheme that it announced recently.
Via Pk Revenue
far too many people have bank accounts in pakistan. government should do everything to discourage people from using the banking system. people should use cash. it is a patriotic deed to use currency notes with the quaid’s picture on them. nothing patriotic about bank accounts.
of course people using cash means the government has no idea what transactions they do. that’s fine because if the government learns about our transactions it’ll tax them and everyone knows the tax revenue only go to waste. it’s get thrown away on imported weapons for the army and covert funding for jihadis who blow up people in our mosques and marketplaces.
You are saying these on “no knowledge” basis just putting theories. If Govt have to control all system all people all population including politicians, bureaucracy, judges etc., you should know all money/assets of every persons in your country.
Means to say that, system should be pure, and clear and taxes should be implement on our welfare and for those purposes we give taxes for. INSHA’ALLAH it will be.
You just said the thing that currently going on in our country and thats why our system is corrupt.
Discontinue currency and prize bonds having denomination above Rs 1000. Otherwise money will stay in lockers.
Is their any news regarding this. please share the details.
This would be ridiculous if WT is increased three hundred percent. People would try to find illegal ways to evade paying With holding Tax.