The govt. is considering different proposals for abolishing around two dozen withholding taxes in the upcoming budget. In order to promote digital economy in Pakistan, the govt. will actively consider abolishing withholding tax and FED fee over usage of credit cards for a period of three to five years. WHT tax rate of distributors might be reduced to 0.25%, so it basically aimed at bringing distributors into the tax net. There is a proposal to exempt income tax and GST applicable on waste management for a period of five years. The govt. plans to grant tax incentives on SEZ for five-year period. The minimum tax rate of 1.5% might be brought down in the coming budget to the tune of 0.5% maximum, so the turnover tax might be fixed at 1% in the coming budget.
2/6/2021