FBR proposed withdrawal of WHT concesionary rates – Alfalah Securities Limited
Karachi, February 06, 2013 (PPI-OT): Federal Board of Revenue has proposed withdrawal of concessionary rates of withholding tax (WHT) on imports by imposing it at a uniform rate of 5 % on imports of both manufacturers and commercial importers.
According to Alfalah Securities Limited, it is not only done to increase revenue generation but also to create a level playing field for tax payers. However, it would also increase the rates of imported products within the country.
Currently, part II of Second Schedule to the Income Tax Ordinance, 2001 relating to the reduction in tax rates stipulates that the tax under section 148 of the Ordinance shall be collected at the rate of 3% on the import value of raw material imported by an industrial undertaking for its own use, while there is rate of 1% of the withholding tax under various clauses of part II of Second Schedule to the Ordinance for different categories of taxpayers.