KARACHI: Withholding tax collection from non-banking transaction recorded a 1% increase to Rs6.156 during the first seven months of the current financial year 2018-19.
According to sources, the Federal Board of Revenue (FBR) had amassed Rs6.084 billion during July-January of FY18, reports an English daily.
The sources shared that collection has shown improvement after registering a fall in the previous two quarters.
In January, the collection grew 13% to Rs941 million compared to Rs830 million in the same month last year.
This increase has been credited to an increase in withholding tax rate on non-cash banking transactions via the Finance Supplementary Act 2018 approved by parliament in October last year.
The previous PML-N administration had introduced a provision of Section 236P to Income Tax Ordinance 2001 via the Finance Act 2015 making it compulsory for a financial institution to deduct and collection 0.6% on a transaction of the amount above Rs50,000 per day from non-filers of income tax returns.
