Islamabad, Sep 3: If the revenue shortage persists in September 2024, the Federal Board of Revenue (FBR) may increase the 1 percent rate on 31 different types of withholding taxes starting next month.
The FBR has created a mini-budget proposal on WHTs in this regard.
The information indicates that there are currently 31 different kinds of withholding taxes that apply to different financial transactions. Should the Federal Bureau of Revenue (FBR) continue to experience insufficient tax revenue during the final month of the first quarter (July–September) of 2024–2025, the FBR has suggested raising withholding tax rates by one percent.
The proposal would be implemented through a supplementary finance bill in case the FBR fails to meet the target for September 2024. Now, it depends on the tax collectors to meet the target for September 2024 or further increase withholding tax rates in October 2024.
The standard rate of sales tax may not be increased but the withholding tax rates are proposed to be raised by one percent in case of persistent revenue shortfall in tax collection, sources maintained.
With net collection of Rs. 1,456 billion during the first two months of 2024–25 compared to the designated objective of Rs. 1,554 billion, the FBR has experienced a massive shortfall in tax collection of Rs. 98 billion.
