The government has decided to withdraw withholding tax collected from the private parties engaged in the management of the trains through the next Finance Bill 2021.
Reliable sources told Propakistani that the Federal Board of Revenue (FBR) will consider this proposal following the directions of Prime Minister Imran Khan. Finance Bill 2021 would abolish advance withholding tax applicable on private parties engaged in the management of the trains
Federal Minister for Railways Azam Khan Swati informed the Ministry of Finance that during the presentation to the Prime Minister regarding the implementation of reforms agenda of Pakistan Railways, the Premier was pleased to direct the FBR to waive off the advance deduction of withholding tax from the private parties engaged in the management of the trains.
The private parties should directly pay the taxes to FBR as per their tax liability.
Azam Khan Swati stated that outsourcing of trains to the private sector by Pakistan Railways is a time-bound task given to the Ministry of Railways and the implementation of this task is delayed due to the imposition of unreasonably high advance withholding tax.
Therefore, the Ministry of Finance should resolve this issue within a week so that compliance may be given to the Prime Minister.
