ISLAMABAD: The government has announced to extend the time period of concessional rate of withholding tax of 0.3 percent on banking transactions for non-filers till November 7.
The decision was taken during the meeting of Economic Coordination Committee (ECC) of the Cabinet, which was chaired by Finance Minister Ishaq Dar. It was further decided that in the event that the National Assembly extends the Income Tax Ordinance 2015, the reduced rate will remain applicable till 15th November 2015.
The government had already announced extension of one month in payment of concessional rate of 0.3 percent withholding tax on all banking instruments on expiry of Ordinance on September 30. The 0.3 percent tax would remain applicable till October 31, 2015. The government in budget 2015-16 had imposed 0.6 percent withholding tax on banking transactions for non-tax filers. However, traders across the country reacted on the tax, resultantly government reduced the WHT to 0.3 percent from 0.6 percent.
