ISLAMABAD – The Federal Board Revenue (FBR) has proposed to increase withholding tax on vehicles with engine capacity of 850cc or above in next budget for fiscal year 2024-25.
The government is considering a proposal to hike advance tax on cash withdrawal from banks by non-filers in next financial year 2024-25.
Reports said the proposal was put forth in ongoing negotiations with the International Monetary Fund (IMF) on another bailout package.
The Federal Board of Revenue (FBR) officials proposed to increase the tax from existing 0.6 percent to 0.9 percent on cash withdrawals for non-filers, starting from new fiscal year.
In previous budget 2023-24, the government had imposed 0.6 percent advance tax on non-filers on cash withdrawals.
The top tax authority would collect additional Rs15 billion from non-filers if the proposal is approved by the parliament in the upcoming budget.
Pakistan’s federal budget for the upcoming fiscal year (FY2024-25) is anticipated to be unveiled on June 7, with projected total expenditure reaching Rs 16,700 billion.
Initial estimates suggest expenditure on interest and loans to be around Rs 9,700 billion, while subsidies are estimated at Rs 1,500 billion.
Tax revenue is forecast to exceed Rs 11,000 billion, with direct taxes contributing Rs 5,300 billion and federal excise duty anticipated to yield Rs 680 billion. Sales tax is projected to generate over Rs 3,850 billion, while customs duty is expected to yield more than Rs 1,100 billion.
Pakistan likely to present Rs9,300 billion deficit budget on June 7
