Non-filers to be taxed heavily for different sources of income, transactions
Business
Move aimed at encouraging documentation of economy, widening tax base
ISLAMABAD (Web Desk) – You will now have to pay 30 per cent tax on income from savings account profit in case of being a non-filer against 15pc for the filers – a clear move to encourage people for documentation of economy and expand tax net in Pakistan.
The move comes as the Federal Board of Revenue (FBR) fixed tax rates for filers and non-filers in different categories/transactions/sources of income for 2023-24 as Pakistan is grappling with poor revenue collection and high expenditure amid the tough conditions set by the IMF (International Monetary Fund) for the staff-level agreement for $3b billion stand-by arrangement (SBA).
It is expected the IMF Executive Board will give final approval to the new deal which came after the previous agreement on Extended Financing Facility (EFF) expired on June 30 without being completed.
A notification issued by the FBR shows that the tax amount for non-filers will be double – in some cases even more than that – when compared to filers. In fact, filers won’t have to pay any tax on income obtained some particular transactions which isn’t the case with filers.
For prize bonds, the tax rate for filers is 15pc and 30pc for non-filer. It is 5 to 15pc on rent income for filers and 10 to 15pc in the case of non-filers.
The details tax from other categories/business transactions is given below:
Bonus shares: Filers 10pc, non-filers 20pc.
Auctioned property: Filers 5pc, non-filers 10pc.
Motor vehicle leasing: filers zero, non-filers 12pc.
Motor vehicle registration: Filers Rs10,000 to Rs0.5 million [depending on the engine capacity], non-filers Rs30,000 to Rs1.5m.
Token tax on vehicles: Filers Rs800 to Rs10,000, non-filers Rs1,600 to Rs20,000.
Commission: Filers 12pc, non-filers 24pc.
Banking transactions: Filers zero, non-filers 0.6pc.
International debit card transactions: Filers 2pc, non-filers 10pc.
Property transactions: Filers 2pc, non-filers 7pc.
Specific services: Filers 3pc, non-filers 6pc.
General services: Filers 7pc, non-filers 14pc.
Power consumers with at least Rs25,000 monthly bill: Filers zero, non-filers 7.5pc.
