ISLAMABAD: The Pakistan Business Council has proposed the Federal Board of Revenue impose higher advance taxes on utility bills, real estate transactions, and luxury expenditures of non-filers....
ISLAMABAD: The Pakistan Business Council (PBC) has proposed the Federal Board of Revenue (FBR) impose higher advance taxes on utility bills, real estate transactions, and luxury expenditures of non-filers. The council has argued that the annual advance income tax amount should be increased to Rs250,000 per year for owners of vehicles of 2000cc and above who are non-filers.
Moreover, it suggested that advance income tax of Rs1,200,000 on the sale of vehicles [2001cc and above] by non-filers before registration [own money] should be increased to Rs2,400,000. Advance tax at 7.5 percent is collected from domestic connections in the name of non-filers whose monthly bill is Rs25,000 or more. Moreover, it suggested that withholding tax be imposed on withdrawals above Rs50,000 in a single day from the bank account of a non-filer.
Sources in the FBR told Geo News that the board has decided to increase the petroleum development levy from Rs50 to Rs60 after which it will be able to collect Rs870 billion. The government aims at increasing non-tax income to Rs2.9 trillion. The sources said that with the aforementioned steps the government plans to increase the pensions by up to 30 percent for which it will need Rs780 billion.