ISLAMABAD: The Federal Board of Revenue (FBR) has extended period of 0.4 per cent withholding tax on non-cash banking transactions up to March 31.
The FBR extended the implementation of reduced rate of WHT on non-cash banking transactions through an SRO 37 (I)/2017. 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 FBR, exercising the powers conferred by proviso under Division XXI of Part IV of the First schedule to Income Tax Ordinance, 2001 (XLIX of 2001), directed that in its notification No SRO 811(I)/2016 dated August 31, 2016, the following amendments shall be made namely: In the aforesaid notification, for the words “first day of September, 2016 to thirty-first day of December, 2016,” the words “first day of January 2017 to thirty-first day of March 2017” shall be substituted.
