Govt to Increase Tax on Profit for Non-Filers

The federal government of Pakistan is likely to increase tax for non-filers on profit earned from bank accounts and deposits. Sources told ProPakistani that the IMF in recent meetings has directed the Pakistani side to increase the withholding tax rate on profit on debt for non-filers. Currently, the government is deducting withholding tax at the rate of 30 percent from the non-filers on profit on debt. There is a possibility that the government will further increase this withholding tax to raise the cost of non-compliance. Sources also added that the government has decided to enhance tax on dividend income from a mutual fund to 5 percent whereas in cases where a mutual fund is deriving 50 percent or making its income from profit on debt, the tax rate on capital gains from funds is likely to increase to 10 percent.