In a significant move, the government has revised the withholding tax rates for non-active tax filers. According to the Federal Board of Revenue (FBR), individuals withdrawing 50,500 PKR or more in a day will now be subjected to a 303 PKR tax, while those withdrawing less than or equal to 55,000 PKR will face a 330 PKR tax.
For individuals withdrawing between 55,000 PKR and 75,000 PKR in a day, the tax rate will be 450 PKR, as per the FBR.
In addition to this, the FBR has introduced new tax rates on vehicles based on their engine capacity. Cars with a 2125 CC engine will incur a 6% tax, while those with a 2501 to 3000 CC engine will be subject to an 8% tax. For vehicles exceeding 3001 CC, the tax rate will be 10%.
It’s worth noting that government offices and foreign diplomatic missions residing in Pakistan are exempted from this tax. Moreover, resident Pakistanis can avail a reduced 5% tax rate on withdrawals using ATM or debit cards.
These new tax changes aim to streamline the tax collection process and encourage greater tax compliance among the citizens. Stay tuned for more updates on Pakistan’s financial landscape.