By Staff Reporter
ISLAMABAD: Federal Board of Revenue (FBR) has notified amendments in the Income Tax Law to increase the tax collection from vehicle registration, property transfer, and online payments to non-residents.
According to a circular issued on Thursday, the revenue authority said that the advance tax on the registration of vehicles from non-active taxpayers will be 200 percent higher than those on the active taxpayer list. The tax rate will vary depending on the engine capacity and the value of the vehicle.
The FBR also increased the withholding tax rates on the sale and purchase of immovable property from 2 percent to 3 percent for active taxpayers and from 4 percent to 6.5 percent for non-active taxpayers.
The tax will be collected by the person responsible for registering, recording or attesting the transfer of the property.
Moreover, the FBR raised the withholding tax rates on online payments to non-residents through debit or credit cards from 1 percent to 5 percent for active taxpayers and from 2 percent to 10 percent for non-active taxpayers.
The FBR said that this measure was aimed at discouraging unnecessary outflow of foreign exchange reserves.
The FBR also introduced a new advance tax of Rs200,000 on foreign national home maids, which will be collected by the Pakistan authority issuing or renewing their domestic aide visa. The tax will be paid by the employer or sponsor or agency of the foreign domestic worker and can be adjusted against their tax liability for a tax year.
The FBR said that these amendments were made through the Finance Act 2023 and were effective from July 1, 2023.
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