Islamabad: The Federal Board of Revenue (FBR) has proposed a 1% increase in withholding tax rates effective October 1, 2024, if a revenue shortfall persists in September 2024. The news came to light on September 3.
According to the details, the proposal, intended to address potential shortfalls in tax collection, will be implemented through a supplementary Finance Bill if the FBR does not meet its revenue target for September. The decision now rests with the tax authorities to either achieve the target or face the tax rate increase.
In the previous story, it was seen that the FBR has reported a tax collection of PKR 1,456 billion for July and August 2024, which is slightly below the target of PKR 1,554 billion. A similar trend is expected for September, influenced by factors such as reduced import taxes. These developments might lead to a moderation in the anticipated 18% growth in domestic taxes.
To address these challenges, the FBR plans to enhance tax collection through digital monitoring systems and improve data analysis to curb illegal sales tax adjustments.
As a graduate in English Literature, Zohaib believes that words are not just a mere figment of imagination. It takes wisdom to be good at them. Following this reason, he is pursuing his career as Public Relations and Content Specialist at Zameen.com.
