To encourage people to file taxes, the Federal Board of Revenue has increased the withholding tax rate for non-activate tax filers or those not on the Active Taxpayers List.
According to a circular, non-ATL filers will be taxed Rs303 for a bank withdrawal of Rs50,500. Those withdrawing between Rs55,000-Rs75,000 will be taxed Rs450. However, government agencies and foreign diplomats will be exempted from these taxes.
Additionally, the circular announced that to discourage unnecessary outflow of foreign exchange reserves via credit/debit card transactions, “withholding tax rates have been increased from 1% to 5% for ATL persons and from 2% to 10% for non-ATL persons.”
Furthermore, the circular announced that for those not on the ATL, the tax on motor vehicles has been revised upward by 200% to 18%, 24%, and 30% of the value of motor vehicles having engine capacity of 2001cc to 2500cc, 2501cc to 3000cc and above 3000cc, respectively.
