ISLAMABAD: Economic Coordination of Committee of the Cabinet (ECC) has further extended the imposition of 0.4 percent withholding tax on non-cash banking transactions made by non-filers of income tax returns for further three months.
The ECC meeting held under the chairmanship of Finance Minister Senator Mohammad Ishaq Dar approved the proposal submitted by Revenue Division to extend applicability period of reduced rate of withholding tax at 0.4 percent for non-filers up to June 30, 2017.
Through Finance Act, 2015 the government introduced Section 236P to Income Tax Ordinance, 2001 and imposed 0.6 percent withholding tax on non-filers on non-cash banking transactions of above Rs50,000 per day.
However, on the agitation from the traders, the government reduced the withholding tax rate to 0.3 percent on July 11, 2015. The rate was revised to 0.4 percent in March 2016, which is applicable till March 31, 2017.
