KARACHI: State Bank of Pakistan (SBP) Governor Ashraf Mahmood Wathra has said that the government has decided to enhance the amount of per day transactions by non-filers of income tax returns to Rs100,000 for deduction of withholding tax in the budget 2017-18.
He was addressing at a meeting with members of Karachi Chamber of Commerce and Industry (KCCI). He said that the finance ministry and Federal Board of Revenue (FBR) have agreed to enhance the threshold to Rs100,000 from existing Rs50,000 for deduction of withholding tax.
The SBP governor said that the transaction limit under easy paisa had been set at Rs50,000 considering the exempt amount from deduction of withholding tax.
The government, in the budget 2015-16, introduced 0.6 percent withholding tax on non-cash banking transaction of Rs50,000 per day, made by a non-filer of income tax returns to bring them into the tax net. The rate was, however reduced to 0.4 percent, which is applicable till March 31.
