FBR chairman says 'unnecessary WHT has ended'

ISLAMABAD: Federal Board of Revenue (FBR) Chairman Asim Ahmed said Friday that unnecessary withholding tax (WHT) has been ended in the federal budget for the fiscal year 2022-23, ARY News reported.

After the federal government unveils the budget for FY2022-23, FBR Chairman Asim Ahmed said in a statement that an audit will be conducted once in four years. It was suggested to impose a 5 to 10 per cent tax on welfare certificates and a reduction of taxation on IT exports from 1 per cent to 0.25%.

“One per cent tax is fixed at the open plot for investment purpose in accordance with the land value, whereas, the exemption will be given on one plot. Tax will be imposed on unused residential and commercial plots. Moreover, industrial plots and farmhouses will also be taxed.”

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“The period of the Capital Gain Tax (CGT) has been extended and 15 per cent CGT will be charged during the first year and 12.5% in the second year. Tax for non-filers is increased from 2% to 5% for the sale and purchase of the property.”

FEDERAL BUDGET 2022-23

The federal budget 2022-23 has a total outlay of 9502 billion rupees has been announced, encompassing measures for what the government termed ‘sustainable economic growth, industrial and agriculture development and relief for the poor people’.

Major points and announcements

• Remittances target 33.2 billion PKR
• GDP growth target set at 5 per cent
• Inflation to be brought down at 11.5 per cent
• FBR Revenue Target at 7004 billion PKR
• Non-Tax revenue target at 2000 billion
• Import target at USD 70 billion
• Export target at USD 35 Billion
• End of 8 percent withholding tax on distributors, producers
• Advance tax will be increased on cars above 1600cc