According to sources, the federal government of Pakistan is considering raising taxes for individuals who are not registered as taxpayers on the profits they earn from bank accounts and deposits.
Reports indicate that during recent meetings, the International Monetary Fund (IMF) has urged Pakistan to increase the withholding tax rate on profits earned from debt for non-tax filers.
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Currently, non-filers are subject to a 30 percent withholding tax rate on profits earned from debt. There’s a possibility that this rate might be further increased by the government to discourage non-compliance.
Additionally, it has been reported that the government plans to raise the tax on dividend income from mutual funds to 5 percent. In cases where a mutual fund derives 50 percent or more of its income from profits on debt, the tax rate on capital gains from funds is likely to be increased to 10 percent.
