Tax rates raised for non-filers

The Federal Board of Revenue (FBR) has notified revised tax rates for non-active taxpayers to increase collection from those who are not willing to be part of tax rolls. The FBR has announced that there will be no tax deduction on cash withdrawals below Rs50,000 per day. In the last budget, the government introduced a 0.6 per cent tax deduction on cash withdrawals from non-filers, or not on the Active Taxpayers List (ATL), according to an income tax circular no 02, 2023 issued on Wednesday. However, for those who do not exist on the ATL, the bank will deduct Rs303 on cash withdrawals of Rs50,500 per day. The value of tax deduction increases with a rise in cash withdrawals — Rs330 on Rs55,000 and Rs450 on Rs75,000, respectively. The exemption from tax deduction will be available to the federal and provincial governments, a foreign diplomat or a diplomatic mission in Pakistan, or a person who produces a certificate from the commissioner that their income during the tax year is exempt.