The federal government is planning to abolish the withholding Tax on educational Services in the next fiscal year’s budget, the local tv channel reports.
The abolition of taxes is said to ease the burden on the population. The government has planned to remove unnecessary and taxes within a few months. Other educational taxes are also likely to be removed from next year’s budget.
While withholding taxes are an important source of revenue collection for the Federal Tax Board (FBR), the FBR study has concluded that withholding taxes generate marginal revenue. Thus the government plans to remove these taxes in the next budget.
According to a news report, the FBR has reviewed income tax provisions under the 2001 Income Tax Act. As a result, the Tax authority recommends that approximately roughly ten income tax provisions be removed from the regulation in the upcoming 2021/22 budget.
FBR is also considering other provisions and will finalize the list before submitting budget proposals. The Pakistani Tax Bar Association (PTBA) has repeatedly called on the FBR to reduce the burden of withholding tax on taxpayers.
Latest posts by News Desk (see all)
- FBR asked to enhance efforts for Broadening Tax Net - May 27, 2023
- National Savings Rate for June-2023 - May 27, 2023
- Islamabad to get a new “Luxury Resort” - May 27, 2023