SIALKOT: The Federal Board of Revenue (FBR) Regional Tax Office, Gujranwala has tightened noose on the hundreds of the contractors, suppliers and companies of both federal and provincial governments for collecting more than Rs 1 billion as withholding tax (WHT).
According to the senior officials, the FBR has also written the letters to the divisional and district heads of these federal and provincial departments, advising them to ensure the early deposit of the WHT payable on all the development and supply bills at the regional tax directorates in Sialkot and Gujranwala before the final deadline ending on June 30, 2016,.
The senior officials added that these contractors, suppliers and companies were defaulter of the WHT amounting Rs 1 billion and reluctant to pay it as per the recently increased ratio of 6.5 percent against the old ratio of 5 percent, despite the repeatedly issuance of the recovery notices to them.
The officials added that the FBR would get an additional income of Rs 250 million by collecting the withholding tax as per new ratio, saying that the FBR has written the special letters to the divisional and district heads of all the federal and provincial departments including the DCOs of all the six Sialkot, Narowal, Gujrat, Mandi Bahauddin, Hafizabad and Gujranwala, 21 Tehsil Municipal Administrations (TMAs), administrators of the six district governments, local government department, Gujranwala Development Authority (GDA), WASA, Gepco, SNGPL , PTCL, irrigation department, federal and provincial highways departments, forest, buildings, education, health departments, district accounts officers and the regional and zonal heads of the banks to ensure the withholding tax deduction from all the contractors, suppliers and companies according to the new ratio.
The contractors, suppliers and companies, which had paid their withholding tax as per the old ratio of 5 percent till the July 1st, 2015, have been advised by the FBR to ensure the additional 1.5 percent more payment of their withholding tax on all of their development and supply bills.
