The federal government is considering raising the advance tax on cash withdrawals by non-filers from banks in the upcoming fiscal year budget. According to sources familiar with the matter, this tax proposal has been discussed during ongoing negotiations with the IMF.
The Federal Board of Revenue (FBR) has suggested increasing the advance tax rate from 0.6 percent to 0.9 percent for non-filers on cash withdrawals in the next year’s budget, a proposal that has received approval from the IMF.
READ MORE: Government to Review Planning Commission’s Structure
Last year, the government introduced a 0.6 percent advance tax on non-filers, and if parliament greenlights this new proposal, the FBR could generate over Rs. 15 billion annually in revenue from non-filers.
Additionally, the FBR has recommended raising the withholding tax on all vehicles with engine capacities of 850cc or more. If this proposal is approved by parliament, it could lead to higher vehicle prices next year, along with increased tax collections from auto consumers.
Further proposals being considered include imposing higher taxes on the sale and purchase of property plots valued at Rs. 50 million or more.
The FBR has presented these and other proposals to the IMF for approval, after which they will be submitted to Prime Minister Shahbaz Sharif for final consideration.
