26/12/2019
ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday said that there is no tax on cash withdrawal from banks for those whose names are on the Active Taxpayers List (ATL).
Otherwise, the withholding tax rate on cash withdrawal is 0.6 percent for persons not appearing on the ATL.
In order to ensure names on ATL, taxpayers are required to file their annual income tax returns. The FBR urged the taxpayers to avail the extended the last date for filing income tax returns for tax year 2019, which is December 31, 2019.
The FBR said that in case of enlistment in the ATL, the taxpayers shall have following benefits:
— Almost half of the withholding tax as compared with the inactive taxpayers
— 5.5 percent tax on imports (raw material)
— 6 percent tax on imports (commercial)
— 15 percent tax on dividends
— 10 percent tax on bank and savings scheme profit worth up to Rs0.5 million and 15 percent on above Rs0.5 million
— 4.5 percent tax on sale of goods by persons except companies
— 10 percent tax on provision of services by persons except companies
— 7.5 percent tax on contract executed by person except companies
— 15 percent tax on prize bonds money of prize bonds
— 12 percent tax on commission
— Annual token fee of vehicles from Rs800 to Rs10,000
— Withholding tax on vehicle registration from Rs7,500 to Rs250,000
— No tax on cash withdrawal of more than Rs50,000 from banks
— No tax on bank transactions (cross cheque, pay order, demand draft etc.)
— One percent tax on purchase of property
— 10 percent tax on sale by auction
— Tax on mobile phone import from Rs70 to Rs200
— 10 percent tax deduction for payment against advertisement to non-resident person
The FBR said that in case of no enlistment in the ATL, the following tax rates are applicable:
— Almost double tax rates
— 11 percent tax on imports (raw material)
— 12 percent tax on imports (commercial)
— 30 percent tax on dividends
— 20 percent tax on bank and savings scheme profit worth up to Rs0.5 million and 30 percent on above Rs0.5 million
— 9 percent tax on sale of goods by persons except companies
— 20 percent tax on provision of services by person except companies
— 15 percent tax on contract executed by person except companies
— 30 percent tax on prize money of prize bonds
— 24 percent tax on commission
— Annual token fee of vehicles from Rs1,600 to Rs20,000
— Withholding tax on vehicle registration from Rs15,000 to Rs500,000
— 0.6 percent tax on cash withdrawal of more than Rs50,000 from banks
— 0.6 percent tax on bank transactions (cross cheque, pay order, demand draft etc.)
— 2 percent tax on purchase of property
— 20 percent tax on sale by auction
— Tax on mobile phone import from Rs140 to Rs400
— 20 percent tax deduction for payment against advertisement to non-resident person
The FBR said that those persons failed to file their return then the tax authorities would assess the applicable tax without serving any notice. Further, legal action will be taken resulting into imprisonment of one to three years.
The FBR also said that late income tax return filers will pay fine.
The FBR said that the filing of income tax returns is mandatory for all persons with annual income of Rs400,000 or more.
