WHT of 0.4pcon non-cash transactions extended

KARACHI: The Federal Board of Revenue (FBR) has said that the withholding tax of 0.4 percent on non-cash banking transactions is applicable up to March 31, 2017.

The Federal Board of Revenue issued SRO 37 (I)/2017 on Monday to extend the implementation of reduced rate of withholding tax on non-cash banking transactions, till March 31. The government imposed 0.6 percent withholding tax on banking transactions other than through cash from July 1, 2015, payable by income tax returns non-filers.

However, on the business and trade community protest, the rate was reduced to 0.3 percent from July 11, 2015, but it was increased to 0.4 percent from March 2016. Previously, the reduced rate facility was available till December 31, 2016.

The Economic Coordination Committee (ECC) in its meeting held in the first week of January 2017 allowed the extension up to March 31. The Federal Board of Revenue officials said the SRO has been issued to implement the rate lawfully, as several banks have stopped charging it from non-filers.