ISLAMABAD: Federal Board of Revenue (FBR) has been asked to remove taxes from the banking sector, imposed through the Finance Bill 2015.
The Pakistan Banks Association (PBA) also urged Federal Board of Revenue (FBR) to abolish Super Tax on banks, 0.6 percent withholding tax on all banking instruments by non-filers.
According to Levy of Advance Tax, the banks will now be required to collect advance tax at the rate of 0.6% on all account to account transfers or transfers through banking instruments made by non-filers. This will be applicable where the total of such transactions by a non-filer exceeds Rs 50,000 in a day & will include all transfers by whatever mode except cash.
The PBA gave recommendations for the Finance Bill 2015, pertaining to taxes on banks. The association suggested restoration of Seventh Schedule (Banking Schedule) of the Income Tax Ordinance in its original form, which should be applied in true letter and spirit. The Seventh Schedule was incorporated in the Income Tax Ordinance, 2001, vide Finance Act 2007, on the premise that banking is a sector which is fully documented and is regulated by State Bank of Pakistan.
