ISLAMABAD: The Federal Board of Revenue is planning to target people who travel abroad from Pakistan regularly to shore up revenue from taxation.
The government is planning to introduce a withholding tax on foreign travel for both filers and non- filers. The tax will be higher for non-filers as in other areas of the budget.
A tax is already applied on business and club class tickets but it will now be extended to all categories.
Sources have also claimed that the government is considering taking back the right to collect Federal Excise Duty on digital services from the provinces. The charge for collecting the duty could be handed to the FBR.
The measure could be taken because Reverse Charge Mechanism is a complex process that leads to tax avoidance through various means.
One of the ways in which tax is avoided is when digital service providers do not classify themselves as end customer.
Another reason for the measure is that multi-national corporation take advantage of the complex tax regime in place. Taking the right for collection back from provinces would allow the federal government to tax the MNCs directly.
