The government has announced to expand the scope of withholding tax (WHT) on tax evaders, include foreign remittances into the tax net and reduce customs tariff slabs and rates in the coming budget. The Federal Board of Revenue (FBR) Chairman Tariq Bajwa informed that the lower oil prices had created heavy losses in the revenue collection and the FBR faced a loss of Rs 21bn last month. The tax evaders or the non-tax paying people will be subjected to higher withholding tax in the coming budget and the computerized national identity cards would stand converted into national tax numbers from 1st July, 2015 and would replace the NTNs.
The foreign remittances, such s transactions, will also be regulated, while banks will also be required to provide a certificate of encashment of remittances, under the section 11 of the Income Tax Law.
All bloggers and social media advertisers will also have to pay taxes:
1) Taxation coming up for foreign remittances i.e. who have AdSense and international payments
2) NTN’s will be replaced by computerized national identity cards.
3) Will have to show income source and file tax returns
Finance Minister Ishaq Dar told the committee that the meeting of the National Economic Council will be held on June 1 to approve Public Sector Development Programme (PSDP) for next year and said the government would get the budget passed from the parliament by June 22 or 23. Secretary Finance Dr Waqar Masood Khan stated that the government would continue the policy of stabilization process. He said all expenditures would be given nominal increases in the next budget except defence. He said the requirements of the armed forces would be fulfilled and the financial pressure would continue next year because of the operation Zarb-i-Azb and resettlement of displaced persons.