Govt to Hike WHT Rates on All Businesses and Transactions of Non-Filers in New Finance Bill

Finance Bill 2024 will increase withholding tax rates on all kinds of business and financial transactions of non-filers of income tax returns. The budget proposals of the Federal Board of Revenue (FBR) on broadening the tax base revealed that the cost of financial transactions of the non-filers would be considerably increased in the coming budget (2024-25). The FBR has proposed to raise withholding taxes for non-filers specifically on cash withdrawal from the banks by non-filers from 0.6 percent to 0.9 percent. On the sales tax side, supplies to unregistered persons would be made costly for the business community. The proposal is part of the government’s policy to penalize non-filers of income tax returns. In the case of non-filers, the FBR will also increase withholding tax on supplies, services, and contracts.