The Federal Board of Revenue (FBR) has suspended withholding taxes on bank transactions and the purchase of secondhand cars, as well as domestic and international air travel, CNG, and minerals, according to official news.
The FBR has abolished withholding taxes as part of the Funding for The Act 2021, which proposes to remove over 12 separate withholding tax requirements in order to provide relief to the people.
According to the provisions of the FBR notification, there would be no withholding tax on money sent overseas via credit or debit cards, while consumers purchasing new cars will be required to register the vehicles in their names or face a penalty of Rs. 200,000.
To ensure the economy’s documentation, the FBR has also announced that businesspeople must have Business Accounts, which must also be declared.
The failure to show and declare taxable income will now result in arrest, since the FBR will now detect tax evasion through a third party.
Aside from that, the FBR has abolished withholding taxes on domestic and international air travel, as well as CNG and minerals.
The FBR website and the Tax Asaan mobile application both have forms for filing tax returns for FY2021. While The deadline for filing taxes is September 30th.