ISLAMABAD: Federal Board of Revenue (FRB) has increased withholding tax rates on the sales of goods for non-filers from 7% to 8% in the case of a company, and from 7.75% to 9% for non-corporate or individual, it is learnt here.
According to official sources, the board has consistently espoused the policy of creating a distinction between compliant and non-compliant taxpayers. An endeavor has been cost of doing business for non-filers by prescribing higher rates of withholding tax for non-compliant taxpayers who choose to remain out of the tax net. Continuing with the same policy the board has envisaged a further increase in the withholding tax rates for non-filers sources added.
Sources added that withholding tax on sale of goods for filer company is 4% while for individual non-filers is 4.5% while withholding tax on sale of goods for non-filer have been increased from the existing 7% to 8% in the case of a company, and from the existing 7.75% to 9% in non-corporate cases.
Meanwhile, withholding tax in respect of pavements made for execution of contracts to a non-filer have been increased from the existing 12% to 14% in the case of a company, and from the existing 12.5% to 15% in non-corporate cases, sources added.