KARACHI: The Federal Board of Revenue collected Rs 4.69 billion withholding tax from non-cash banking transactions by non-filers during the first five months (July-November) of the current fiscal year of 2016-17, showing 8.5 percent decrease.
The FBR collected Rs5.12 billion in the corresponding period of 2015-16.
An official at the Large Taxpayers Unit (LTU) Karachi said that the tax authorities were estimating an increase in withholding tax collection after incentives on property transactions announced through the Income Tax Ordinance (Amendment) Act, 2016, effective from December 2. He said, however, the property registration had come almost to standstill since the changes introduced into the law in July.
The government, through the Finance Act 2016, slapped 0.6 percent withholding tax on non-cash banking transactions of Rs50,000 and above made by non-filers of the income tax returns in order to bring the undocumented economy into the mainstream.
