Debit & Credit Card holders of different banks in Pakistan are receiving notification from banks that now advance tax of 1% & 3% will be applicable on foreign transactions.
For filer advance tax of 1% will be applicable on foreign transaction while for non filers 3% advance tax will be applicable. These new taxes are applicable from 1st July, 2018.
Ab is per bhi #tax
Advance Tax of 1% for Filer & 3% for Non-Filer is applicable on both credit and debit card foreign transactions effective 1-Jul-2018.— Mubashir Mahmood (@mubashirmahmood) July 5, 2018
In recent years government have imposed higher taxes on non-filers to promote tax compliance. Government expected that if the cost of not filing tax returns becomes higher, people will prefer to get documented.
To achieve this more restrictions were introduced in 2018-2019 budget after which non-filers will not be able to purchase new motor vehicles or import cars. Only those who are in active taxpayers list of FBR will be able to purchase new motor vehicle.
Similarly non-filers will not be able to purchase property with a value over Rs. 4 million, previously government introduced many penalties on using bank facilities for non-filers.