Islamabad: In order to increase the tax collection from not on the Active Taxpayers List (ATL) or non-filers, the Federal Board of Revenue (FBR) has released a revised rate system.
According to the new rates, the banks will deduct Rs 303 on cashwishdrawl of Rs 50,500 – for those who don’t exist on ATL (non-filers). Following the same trend, the deducted value of Rs 75,000 will be Rs 450. An exemption from tax deduction will be provided to:
- Federal and provincial governments
- Foreign diplomats or a diplomatic mission in Pakistan
- The person submitting a certificate from the commissioner declaring that their income is exempt during the tax year.
On Motor vehicles, the Finance Acto 2023 defines that motor vehicles with engine capacity of 2001cc or above will be obligated to tax collection on the following pattern:
- Engine capacity of 2001cc to 2500cc: 18 per cent
- Engine capacity of 2501cc to 3000cc: 24 per cent
- Engine capacity above 3000cc: 30 per cent
Similarly, for non-ATL persons, the withholding tax rates on making payments to non-residents with a debit or credit card have been increased from 2pc to 10pc. This decision was taken to discourage unnecessary outflow of foreign exchange reserves.
