ISLAMABAD: The federal government is mulling over increasing an advance tax on cash withdrawal by non-filers from banks in the upcoming FY budget 2024-25.
According to sources, FBR proposed to increase the advance tax on cash withdrawals from 0.6 percent to 0.9 percent for non-filers in next year’s budget.
The government had first imposed a 0.6 percent advance tax on non-filers’ is FY2023-24 budget.
Sources said that if parliament approves this tax proposal, the FBR could collect over Rs. 15 billion annually in revenue from non-filers.
Sources also added that FBR has also proposed to increase withholding tax on all sorts of vehicles, having engine capacity of 850cc or more.
Moreover, the govt has also decided launch crackdown against individuals who did not register themselves for Tajir Dost Scheme. The FBR has proposed to send notices to them.
The Tajir Dost Scheme is a voluntary tax compliance scheme designed to simplify tax filing for small businesses.
The FBR has presented these proposals before the IMF, sources said, adding that the proposals will be shared with PM Shahbaz Sharif for final approval.
Earlier it emerged that the International Monetary Fund (IMF) has demanded further increase in electricity prices, citing an additional burden of Rs 150 billion on the power sector. –Agencies
