KARACHI: The Federal Board of Revenue (FBR) has informed banks and other financial institutions about decrease in withholding tax. Now from July 11, 2015 WHT on banking transactions decreased from 0.6 percent to 0.3 percent.
Sources told Customs Today that the FBR has already written a letter to the Pakistan Banking Council in which it has clarified that withholding tax on banking transactions has been decreased from 0.6 percent to 0.3 percent in line with an amendment in the Income Tax Act 2015 .
This decrease will effective till September 20, 2015, after expiry of this date withholding tax will be deducted at the rate of 0.6 percent as announced by the federal finance minister.
In the circular FBR authorities asks banking authorities to pass on instructions to all relevant branches to deduct WHT tax at the rate of 0.3 percent instead of 0.6 percent.
