ISLAMABAD: The Federal Board of Revenue (FBR) is seriously considering a proposal to exempt salary accounts from withholding tax. This concession will be granted to those with salary accounts in banks.
Sources of in FBR told Customs Today that a number of complaints were being received by FBR that banks are deducting income tax from their salaries despite their names are already in the list of active taxpayers. Banks were demanding to all these persons to bring “exemption certificate” from FBR. Now a proposal is forwarded to FBR, saying that WHT is levied on banking transactions so salaried persons cannot afford such a tax. These employees forwarded their appeals to FBR Chairman Nisar Mohammad Khan to announce exemption of WHT on their salary accounts.
Sources said that FBR authorities are seriously considering such a proposal to grant exemption of withholding tax on salary accounts. An official announcement is expected in near future in this regard.
