The federal government is mulling an option to provide relief to late filers of taxes by lifting the restrictions placed in the last budget of the PML-N government.
By lifting the restrictions, the government aims to boost the weakening automobile and real estate sectors. It also wants to bring the maximum number of people in the tax net during the second half of the tax year 2018-19.
According to a local news source, the lower number of income tax return filers (1.5 million) for the tax year 2018, has jolted the government to its core. The government has been forced to take preemptive measures and wants to ease the conditions on late filers.
Previously, the late filers were deprived of the perks available to those whose names appear in the ATL.
Good News for Business Community
The report cites sources from FBR to state that Finance Minister Asad Umar is considering a proposal to either abolish or reduce at least 18 types of withholding taxes. The government has been told that these taxes do not generate enough revenue but create difficulties for the business community instead.
Umar has been informed that the 0.6% withholding tax on banking transactions is the only tax that generates maximum revenue, but it has affected banking deposits.
The minister has announced on TV that the second installment of the mini-budget is coming this year on January 23. He has promised several ‘ease of doing business’ and ‘export-boosting’ policies in this finance bill.