The Federal Board of Revenue (FBR) has confirmed that the withholding tax rate for IT and IT-enabled services will remain at 4 percent during 2025-26.
According to an income tax circular, the Finance Act 2025 has set a flat 15 percent withholding tax rate for unspecified services and sports persons, up from the previous rates of 9 percent and 11 percent for companies and non-companies, and 10 percent for sports persons.
For specified services under section 152, the rate has been increased from 4 percent to 8 percent, while under section 153, it has risen from 4 percent to 6 percent, excluding IT and IT-enabled services, which retain the 4 percent rate.
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So fbr is taxing people for doing their job ? Oh that’s 1 way to break the country . 😆
I’m willing to pay but when will the majority start paying their dues?
So we should pay taxes for giving service ? Do you hear yourself ?
So if I go to my office and work . The govt should charge tax on me on my own work ?
That’s not only absurd but criminal.
Incompetence at it peak, they can only increase tax instead of bringing tax evaders.
Who has taken this decision? IT professionals are bringing dollars in the country. SBP pur chase a lot of dollars at higher cost to meet their requirements. Dollars earned by IT professionals will create job opportunities and save money wasted by SBP to purchase dollar from open market.