Authorities levy an extra Rs223 billion in taxes.

Additional taxes

Rs223bn extra taxes Additional taxes of Rs223 billion, including 0.6% withholding tax on bank cash withdrawals, expanded super tax across the board.
The government has imposed extra taxes of Rs223 billion, including withholding tax of 0.6 percent on cash withdrawal from banks, expanding super tax across the board, and securing legal authority to tax up to 50% windfall gains profit.The Federal Board of Revenue (FBR) will earn Rs903 billion through taxation measures implemented in the mini budget in February 2023, which will add Rs680 billion to the financial year, and Rs223 billion from additional revenue measures.The FBR gave tax relief of Rs23 billion on all four taxes, resulting in net higher revenues of Rs880 billion in the next financial year.

 GDP growth

The government will achieve nominal growth of 24.3 percent, real GDP growth of 3.5 percent, and inflation of 21% to meet its Rs9.2 trillion revenue target in 2023-24.The February 2023 mini budget and net increased taxation will boost tax collection in the next budget to Rs7.2 trillion for the outgoing fiscal year.To accommodate exchange rate fluctuations, the FBR raised the overseas remittance threshold from Rs5 million to $100,000 or equivalent each tax year under the proposed amnesty scheme. Cash withdrawals over Rs50,000 would net the government Rs14–15 billion.


Nonresident individual POC/NICOP holders who purchase immovable property with foreign remittances are exempt from the 2 percent final withholding tax.The government charged Rs2,000 for energy-inefficient fans and 20% for incandescent bulbs. Add technical service royalty and cost to FED on services.The government imposed 18% sales tax on bulk-sold edible products under brand names or trademarks after withdrawing exemption. The FBR increased the reduced sales tax from 12 percent to 15 percent on supplies made by POS tier-1 stores selling leather and textile products. Islamabad Capital Territory (ICT) proposes a 15% tariff on electric power transmission.The FBR proposed increasing withholding tax on foreign credit/debit card payments.


The FBR proposes a Rs200,000 adjustable advance fee on employers on work permits for foreign domestic employees in Pakistan.After the budget was announced, FBR Chairman Asim Ahmed and his colleagues gave a technical briefing at FBR headquarters on Friday, stating that the Super Tax will apply to all sectors. When asked about revenue predictions from windfall gain tax, the chairman said only legal provision was proposed to get powers to apply windfall gains tax on sectors making extraordinary profits. He claimed they had worked it out but had not decided when to impose this tax.


The rationalisation of Super Tax under Section 4C would apply to all persons with income above Rs150 million, with three new income slabs of Rs350m to Rs400m, Rs400m to Rs500m, and Rs500m and above taxed at 6 percent, 8 percent, and 10 percent, respectively.The government charged non-filers 0.6 percent advance adjustable withholding tax on cash withdrawals over Rs50,000.

The government raised withholding tax rates by one percent on supply of goods other than rice, cotton seed, or edible oils, on rendering services, including those subject to concessionary tax rates of 3 percent but excluding electronic and print media advertising services, and on contract execution, excluding sportsperson. It raised the withholding tax rate for commercial importers of items in Part III of the Twelfth Schedule to the Income Tax Ordinance 2001 by 0.5 percent. 6% withholding now.Commercial importers paid 1% tax on capital items. Industrial enterprises will continue to pay 2% withholding tax on imported raw materials. Commercial importers will also pay 3.5 percent for raw materials.

Company bonus shares were subject to a 10% final withholding tax and 20% for non-filers.The FBR raised withholding taxes on debit/credit/prepaid card payments to non-residents from 1 percent to 5 percent and 2 percent to 10 percent for non-filers.


Authorities levy an extra Rs223 billion in taxes.
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