The federal government is expected to raise the advance tax on cash withdrawals by non-filers from banks in the upcoming fiscal year’s budget.
According to sources, this tax proposal has been discussed with the IMF team during recent negotiations The FBR has suggested increasing the advance tax on cash withdrawals for non-filers from 0.6 percent to 0.9 percent in next year’s budget, a proposal that has received IMF approval.
The government initially imposed a 0.6 percent advance tax on non-filers last year in the budget.
Sources indicate that if this tax proposal is approved by parliament, the FBR could generate over Rs. 15 billion annually in revenue from non-filers.
Additionally, sources mentioned that the FBR has also proposed an increase in the withholding tax for vehicles with an engine capacity of 850cc or more.
If parliament approves this proposal, vehicle prices are expected to rise next year, and the FBR will collect more taxes from auto consumers. Sources further stated that the government is considering imposing an additional tax on the sale and purchase of property plots valued at Rs. 50 million or more.
The FBR has presented these and other proposals to the IMF and is awaiting approval before submitting them to PM Shahbaz Sharif for final approval.