Islamabad: There is a possibility of one percent increase in the withholding tax rate if the federal government does not meet the target of tax collections for the current quarter (July to September).
Sources say that Pakistan has told the IMF that if the target for the first quarter is not met, then the mini-budget will come, because it is facing a revenue shortfall of ninety-eight billion rupees in the first two months of the current fiscal year.
If the FBR fails to achieve the tax target for this month (September), then in October, the rate of withholding taxes on imports, dividends, profit on debt, mobile phones, supply of goods and services and payments to non-residents will be increased. The rate of withholding tax on sectors is likely to increase by one percent.
However, the FBR officials are optimistic that since the income tax returns are due in September and a huge additional revenue is expected with them, not only the tax collection target set for this month will be achieved, but the target collection will also be exceeded. are expected.
