KARACHI: The Federal Board of Revenue (FBR) has notified extension of reduced withholding tax rate at 0.4 percent on banking transaction up to April 30, 2016.
The government imposed 0.6 percent withholding tax on all banking transactions exceeding Rs50,000 per day under section 236P of Income Tax Ordinance 2001.
However, following protests the government reduced the tax rate to 0.3 percent of the transaction value and later it was increased to 0.4 percent.
The tax has been imposed for all non-filers irrespective of individual or company and sectors. An official said the tax was imposed for documentation of economy and to discourage untaxed money in banking system.