ISLAMABAD – The government has decided to impose withholding tax on international air tickets and increase the rate of the tax from six to 10 percent on professionals like doctors, lawyers, charted accountants etc in the upcoming budget.
As per reports, the FBR projects revenue of Rs6 billion from WHT on international air tickets in budget 2014-2015. Moreover, the government will also enhance federal excise duty (FED) on the international travel.
However, the WHT on international travel will not apply on economy class passengers. For business and first class also, there will be two rates of withholding tax on air tickets: as 5 percent on the filers of income tax returns and 10 percent on non-tax filers. The tax would be refundable after passengers file their tax returns. As per reports, the government wants to bring wealthy non-taxpayers into tax net who are enjoying foreign trips without paying any tax. This budgetary proposal of the FBR ill not have any impact on the general masses, as common people mostly travel in economy class. Also, the government is going to enhance withholding tax from six to ten percent for the professionals like doctors, lawyers, charted accountants and others.
