ISLAMABAD: Pakistan Business Council (PBC) proposed Federal Board of Revenue (FBR) to impose higher advance taxes on utility bills, real estate transactions and luxury expenditures of non-filers.

Council argued that annual advance Income Tax amount should be increased to 250,000 per year for owners of vehicles of 2000cc and above who are non-filers.

It added that on purchase of cars, advance Income Tax is levied on non-filers [under section 231B] as tabulated and suggested.

Moreover, it suggested that advance income tax of Rs 1200,000 on sale of vehicles [2001cc and above] by non-filers before registration [own money] should be increased to 2,400,000.

Advance tax at 7.5 percent is collected from domestic connections in name of non-filers whose monthly bill is Rs 25,000 or more.

Moreover, it suggested that withholding tax be imposed on withdrawals above Rs 50,000 in single day from bank account of non-filer. Moreover, sources in FBR told that board has decided to increase petroleum development levy from Rs 50 to Rs 60 after which it will be able to collect Rs 870 billion. Government aims at increasing non-tax income to Rs 2.9 trillion.

Sources said that with aforementioned steps government plans to increase pensions by up to 30 percent for which it will need Rs 780 billion.

Published in The Daily National Courier, June, 08 2023

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