Islamabad: While discussing the Finance Bill in the meeting of the Standing Committee on Finance, the Federal Board of Revenue (FBR) briefed on several tax proposals. The meeting was informed that 0.8% advance tax will now be levied on cash withdrawals from banks for non-filers, however, tax exemption will be available on amounts up to Rs75,000 per day, which was previously limited to Rs50,000. The decision aims to increase revenues and document the economy, while the government has accepted several conditions of the IMF to achieve tax targets.
The FBR clarified that registered online business persons will not be allowed to collect additional income tax from customers, and they will have to submit regular returns.
FBR officials also highlighted new policies related to e-commerce during the meeting. According to officials, 2 percent income tax will be applicable on online business of clothes, while 0.5 percent income tax will be applicable on electronics and electrical products. It has been proposed to impose 1 percent tax on all other types of online business. Registered persons doing online business will be considered as returns based on customer orders, and no raids will be conducted on them.
