Islamabad: The Institute of Chartered Accountants of Pakistan (ICAP) has proposed the Federal Board of Revenue (FBR) to revoke Withholding Tax on cash withdrawal for property tax filers, reported a news source. At the moment, Withholding Tax of 0.3 is imposed on cash withdrawal from banks exceeding the limit of PKR 50,000 for filers and 0.6% for non-filers.
In its budget proposal, ICAP suggested the FBR to increase the cash withdrawal limit for filers from PKR 50,000 to PKR 100,000 as this will help the board broaden the tax base.
The ICAP has suggested more measures that can be taken, including;
Tax collection/deduction rates for filers be lowered
Incentivisation for filers, rate of extra tax be increased to 15% from present 5% for non-filers
An extra 5% to be levied on bill amount exceeding PKR 15,000 for unregistered persons having industrial or commercial undertaking.
All exemptions or tax concessions provided under the law should be for filers only
Complete information on sale of movable property be collected.
Sharing information on sale of immovable property transfers in designated areas be made compulsory for tax filers.
