ISLAMABAD: The Pakistan Business Council (PBC) has proposed to the Federal Board of Revenue (FBR) to levy higher advance tax on utility bills, real estate transactions and luxury expenses of non-filers.
The council has argued that the annual advance income tax amount should be increased to Rs 250,000 per annum for owners of 2000cc and above vehicles who are non-filers.
It added that advance income tax is imposed on non-filers on purchase of cars. [under section 231B] As tabulated below, which should be increased as suggested below:
Engine capacity | Current Tax | Tax hike proposal |
1800cc -2000cc | 600,000 rupees | 2,000,000 Rs |
2001cc-2500cc | 900,000 rupees | 2,500,000 Rs |
2501cc-3000cc | 1,200,000 Rs | 3,000,000 Rs |
Above 3000cc | 1,500,000 Rs | 4,000,000 Rs |
Further, an advance income tax of Rs 1,200,000 was proposed on the sale of vehicles. [2001cc and above] By non-filers before registration [own money] 2,400,000 should be increased.
Advance tax at 7.5% is levied on domestic connections in the name of non-filers whose monthly bill is Rs 25,000 or more.
Further, withholding tax was proposed to be levied on withdrawals exceeding Rs 50,000 in a single day from a non-filer’s bank account.
This was further informed by FBR sources Geo News The board has decided to increase the Petroleum Development Levy from Rs 50 to Rs 60 after which it will be able to collect Rs 870 billion. The government aims to increase non-tax revenue to Rs 2.9 trillion.
Sources say that with the above measures, the government intends to increase the pension by 30%, for which it will require 780 billion rupees.