Govt to impose more tax on Umrah, Hajj, foreign travel in budget 2023-24

ISLAMABAD: The federal government to impose tax on the Umrah, Hajj and foreign travel in the budget 2023-24, ARY News reported.

As per details, the federal government has been suggested to impose a 20 percent income tax on non-filers on frequent foreign travel while a five percent income tax has been suggested on tax filers

Furthermore, a 20 percent withholding tax is to be imposed on non-filers expenses and five percent withholding tax on the hotel and other expenses of tax filers.

Sources said that the federal government has also suggested imposing an additional tax on Umrah and Hajj pilgrims.

Earlier, Prime Minister (PM) Shehbaz Sharif directed the government’s economic team to utilise all possible resources to provide maximum relief to the common man in the Budget for the upcoming fiscal year 2023-24.

The prime minister ordered to take every possible step to minimize the financial crisis of the middle and lower income segments of society.

During the meeting, the economic team briefed the prime minister about budget preparation besides the revised targets of tax collection for the current fiscal year and the proposed targets for the next fiscal year.

It is pertinent to mention here that the federal government had suggested giving incentives to allied industry and development sectors in the 2023-24 budget as it will increase the remittances through banking channels.