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Home Breaking News

FBR introduces revised salary tax deduction mechanism

byCT Report
19/02/2025
in Breaking News, Latest News, National, Slider News
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MULTAN: The Chief Commissioner Regional Tax Office Multan Dr. Muhammad Sarmad Qureshi has announced that measures are being taken to improve the efficiency of tax deductions from employees’ salaries. Under the new mechanism, salaries will now be taxed at revised rates, a move expected to increase the Federal Board of Revenue’s (FBR) overall tax collection. The initiative also aims to enhance facilitation and awareness among employees regarding tax regulations.

Speaking at a seminar held at the Regional Tax Office (RTO) Multan, the Chief Commissioner Dr. Muhammad Sarmad Qureshi commended the efforts of Commissioner Withholding Zone Muhammad Aslam Jamro for organizing an awareness session on tax deductions under Section 149 of the Income Tax Ordinance, 2001. He termed the initiative a welcome step and appreciated the organizing team for their contribution.

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The seminar was attended by representatives from Multan Zone, Dera Ghazi Khan Zone, various universities, government institutions, and district accounts officers, along with withholding agents. Discussions focused on strategies to ensure compliance with tax regulations and address existing gaps in revenue collection.

Commissioner Withholding Zone Muhammad Aslam Jamro highlighted that while government employees’ salaries increase annually, tax revenue from this sector has declined. He pointed out that collections have dropped from Rs. 2 billion to Rs. 1.5 billion, resulting in a shortfall of Rs. 500 million. To bridge this gap, withholding agents were provided training on in-kind and cash rate methodologies, enabling them to improve tax collection under the FBR’s revised tax structure.

Withholding Tax Officer (IR) Asad Bilal delivered a detailed briefing on Section 149 of the Income Tax Ordinance, 2001, covering key aspects such as the scope of salary taxation, exemptions, issues related to tax deductions, responsibilities of withholding agents, and consequences of non-compliance. The session also addressed tax sections under the First Schedule of the Ordinance.

Commissioner Muhammad Aslam Jamro appreciated the active participation of all stakeholders and expressed confidence that district accounts officers and salary-related withholding agents would enhance their performance. He urged them to maintain Multan Zone’s legacy of achieving top rankings in tax collection

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