The government has extended the deadline for applicability of 0.4% withholding tax from 30th September 2017 to 31st December 2017.
The reduced withholding tax was applied on banking transactions for non-filers.
The decision was taken during a meeting chaired by Minister for Finance, Revenue and Economic Affairs, Senator Mohammad Ishaq Dar on Thursday at the Ministry of Finance.
The meeting reviewed the progress of revenue collection, return filing and awareness campaign by the Federal Board of Revenue (FBR). Chairman FBR, senior Members of FBR, and senior officials of the Ministry of Finance were present at the meeting.
It was decided that the period of applicability of the 0.4% withholding tax on banking transactions for non-filers shall be extended from 30th September 2017 to 31st December 2017. The Finance Minister ordered the FBR to complete the due process in this regard.
Chairman FBR briefed the Finance Minister on revenue collection for the month of September 2017 and the first quarter of FY 2018, i.e. July-September 2017. He said that FBR is on-course to achieve the tax revenue target for FY 2018. The Finance Minister expressed satisfaction over the revenue collection efforts being made by FBR.
Chairman FBR also briefed the Finance Minister regarding the awareness campaign to educate and convince taxpayers to fulfill their legal tax obligations.
He said that the campaign has started to translate into results as the number of returns received upto 28th September 2017 has increased to 178,945 compared with 54,086 returns received till the same date in September 2016. The Finance Minister appreciated the successful awareness campaign of FBR and the resulting increase in compliance by taxpayers.