Islamabad: Following up on its announcement to introduce a loyalty programme for overseas Pakistanis, the government has announced its decision to abolish the Withholding Tax (WHT) on remittances from July 1 onwards, a news source reported.
More specifically the withholding tax on cash withdrawals, transfers and bank instruments from a domestic bank account will be exempted from withholding tax for the amount received from abroad in that account during the past year.
The measures the government had announced during the past year have also been effective as remittances rose to USD 17 billion during the first nine months of current fiscal, a growth of 6.2% for the same period last year. The government expects the total remittances to cross USD 20 billion by the end of Fiscal Year 2019-20.
In a related development, stakeholders have requested the government to introduce the requisite amendment in the Income Tax Ordinance through the Finance Bill.
