Islamabad: The Senate Standing Committee on Finance has approved a proposal to impose a 75% withholding tax on non-filers for phone and internet services while reducing the tax rate for salaried individuals.
According to private channel, a meeting of the Senate Standing Committee on Finance was held under the chairmanship of Senator Saleem Mandviwalla, in which the approval was given for imposing a 75% withholding tax on non-filers for phone and internet services.
Non Filers are crying as netizens find budget 2024-25 hilarious
However, the proposal to impose a 15% capital gains tax on property from July 1 and to provide parliamentarians’ records to NADRA for tax collection was rejected.
Senator Anusha Rehman stated that NADRA’s data is not secure, while the Chairman of the FBR said that the SIFC has instructed NADRA to collect data, including the data of officers from grades 17 to 22. However, the committee rejected the proposal to provide politicians’ data to NADRA.
Mobile phone prices hike after increased sales tax in budget 2024-25
The Chairman of the FBR stated that a clause for late filers has been introduced in the Finance Bill, with a tax rate proposed between filers and non-filers. Saleem Mandviwalla said that the tax for late filers should be equal to non-filers, while Anusha Rehman suggested increasing taxes on non-filers instead of filers.
The committee deferred the proposal to increase property tax and also rejected the proposal to extend tax exemptions for FATA and PATA for another year.
The IMF opposed tax exemptions for the merged districts. Senator Saleem Mandviwalla mentioned that the entire country’s industry faces issues due to the benefits given to FATA and PATA, which would increase the industry’s problems.
The Chairman of the FBR stated that the withholding tax rate on non-filers is already high, and their mobile SIMs and businesses can also be shut down.
According to the Chairman of the FBR, the list of 500,000 non-filers includes people with an annual income of over 2 million. These individuals have previously declared their income in tax returns.
Amjad Zubair Tiwana mentioned that even those who become temporary filers just to purchase a car, plot, or house will have to pay additional tax.
He stated that from the next fiscal year, an 18% sales tax will be imposed on processed and packaged flour, pulses, rice, sugar, and spices.
The committee considered a proposal to impose an 18% sales tax on locally produced baby milk.
During the meeting, industry representative Sheikh Waqar suggested a gradual increase in sales tax, as it would significantly raise the price of baby milk.
Chairman FBR Amjad Zubair mentioned that milk companies have increased their product prices multiple times in the past two years, imposing a further burden on consumers while being unwilling to contribute to the government.
It is surprising that even the distributors of multinational companies are not in the tax net. From the next fiscal year, zero-rating will be completely eliminated.
The Chairman of the FBR further stated that imported milk is sold at double the price of local milk.
From the next fiscal year, an 18% sales tax will be imposed on processed and packaged flour, pulses, rice, sugar, and spices. If we waive the 18% sales tax, the companies should reduce their prices by 18% as well.
The Senate Standing Committee on Finance approved the proposal to ban foreign travel for non-filers. The Chairman of the FBR stated that action will be taken against those who do not file tax returns under the Income Tax General Order.
Hajj, Umrah, minor children, students, and NICOP-holding overseas Pakistanis will be exempted.
According to the Chairman of the FBR, non-filers’ mobile SIMs, electricity, and gas connections will also be cut off. Senator Farooq H. Naek stated that a travel ban on non-filers would be understood as being included in the Exit Control List (ECL).
The Chairman of the FBR stated that the withholding tax rate on non-filers is already high, and their mobile SIMs and businesses can also be shut down.
The list of 500,000 non-filers includes people with an annual income of over 2 million. These individuals have previously declared their income in tax returns. The Chairman of the FBR further mentioned that even those who become temporary filers just to purchase a car, plot, or house will have to pay additional tax.
