Business
Government Plans Tax Increases on Non Filers, Vehicle Owners
In preparations for the next fiscal year budget, the federal government is contemplating significant tax revisions targeting non-filers, vehicle owners, and high-value property investors.
Discussions with the International Monetary Fund (IMF) have been underway regarding these proposed measures.
The Federal Board of Revenue (FBR) has suggested increasing the advance tax on cash withdrawals by non-filers from banks.
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The proposed raise from 0.6 percent to 0.9 percent has secured approval from the IMF. If approved by parliament, the FBR anticipates an annual revenue collection exceeding Rs. 15 billion from non-filers.
Additionally, the FBR has proposed raising withholding tax rates for vehicles with engine capacities exceeding 850cc.
If passed, this measure could lead to a surge in vehicle prices, consequently increasing tax revenues from auto consumers.
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Moreover, the government is considering imposing additional taxes on the sale and purchase of property plots valued at Rs. 50 million or more.
This initiative aims to bolster government revenues while targeting high-value transactions within the real estate sector.
These proposals, along with several others, have been presented before the IMF for review.
Pending approval from the IMF, they will subsequently be shared with Prime Minister Shahbaz Sharif for final approval, marking a crucial step in shaping the fiscal policy for the forthcoming year.
