Difference in Withholding Tax Rates on Filers and Non-Filer Likely to Increase

The difference between the withholding tax rates of filers and non-filers may also be further increased on different financial transactions including buying and selling of immovable properties.

Sources informed that the gap is expected to be further widened between the filers and non-filers from July 1, 2023, specifically in the case of property transactions.

The tax policy for budget-2023-24 would be continued with the WHT rates of the filers and non-filers, but the gap would be further increased to discourage non-filers of income tax returns.

This means that the persons not appearing on the active taxpayer lists would have to pay more and more taxes from the next fiscal year.

As reported earlier, the government is likely to further raise taxes for the non-filers on the buying and selling of immovable properties in the upcoming budget (2023-24) to also document the trading of files of plots at private housing societies.

Many private housing societies are involved in the avoidance of taxes by not showing actual transfers and the trading of files continues without payment of taxes. To check such activities at the private housing schemes, the FBR will take measures in the coming budget to document buyers and sellers and ensure payment of taxes.

Published by
ProPK Staff