75% Withholding Tax on Non-Filers' Phone and Internet Approved

The Senate Standing Committee on Finance has approved a hefty 75% withholding tax on phone and internet services for non-filers.

The decision, which came during a meeting chaired by Senator Saleem Mandviwalla, also includes proposals to reduce the tax slabs for the salaried class and increase overall tax rates.

The committee's session saw extensive discussions on various tax proposals, with members scrutinizing their potential impact on the economy and the public.

However, the committee rejected the proposal to grant the National Database and Registration Authority (NADRA) access to parliamentarians' tax records for collection purposes.

The rejection was underscored by concerns over data security, with Anusha Rehman voicing apprehensions about the safety of NADRA's data management.

Despite the Strategic Implementation and Forecasting Cell (SIFC) advocating for the transfer of data to NADRA, particularly concerning grade 17 to 22 officers, the committee maintained its stance against including politicians' records.

Additionally, the committee discussed the provision for late filers in property transactions, with Chairman Federal Board of Revenue (FBR) emphasizing a balanced tax rate between filers and non-filers.

The proposal to increase the capital gains tax on property to 15% from July 1 was postponed, and the committee also rejected the suggestion to extend tax exemptions for the Federally Administered Tribal Areas (FATA) and the Provincially Administered Tribal Areas (PATA) for another year.

 FBR chairman noted the government's opposition to the continued exemptions for FATA and PATA, highlighting the potential complications for the industrial sector. Despite these objections, the committee opted not to extend the tax reliefs.