ISLAMABAD: The Punjab Government has asked the Federal Board of Revenue (FBR) to clarify regarding withholding tax imposed on individual taxpayers and their categories.
Official sources told Customs Today that government of Punjab has written an official letter in which it is informed that provincial planning and development department has started tourism activities in the province under economic growth project with collaboration of World Bank and for this project the government of Punjab has got services of fulltime consultants to run project management unit.
The letter further added that earlier government deducted withholding tax at source considering them as salaried individual taxpayers; however, after implementation of supplementary budget there were changes made in rates of withholding taxes. Meanwhile, the government of Punjab received a circular no. 06 on 24 October 2018, where FBR introduced classification in individual taxpayers and categorized them in two categories.
Sources told that the Government of Punjab in its letter demanded of the FBR to direct regarding withholding tax rates on these two categories and the classification of the hired consultants under the government of Punjab project.
