Summary Government is likely to set revenue target of Rs 4 trillion during 2017-18.
ISLAMABAD (Dunya News) – The Government, which is to announce Federal Budget for 2017-18 by the end of this month, would likely to give tax benefits to individuals raising the bar of exemption to Rs 500,000 from Rs 400,000, while it would charge 0.4 percent as withholding tax on all the bank transaction from non-filers.
The government would pass the bill to impose withholding tax of 0.4 percent on every bank transaction executed by the non-filers like withdrawal of cash, pay order, draft or even cheque issuance. During the current fiscal year the government has to pass a nod from the Economic Coordination Committee to impose 0.4 percent on non-filers.
However filers have to pay 0.3 percent on cash withdrawal in excess of Rs 50000 while they are exempted from this tax if transaction done through issuance of cheque, pay order or draft. The main aim of the government has been tapped the movement of cash transaction as it generally promotes movement of untax funds.
Moreover, the government is likely to set revenue target of Rs 4 trillion during 2017-18 as against target of Rs 3.6 trillion.
