FBR Announces Revised Tax Rates for Filers and Non-Filers for the Fiscal Year 2023-2024
ISLAMABAD: The Federal Board of Revenue (FBR) has recently released a notification outlining the revised tax rates for both filers and non-filers from July 1, 2023, to June 30, 2024.
Prize Bonds:
For prize bonds, filers will be subjected to a tax rate of 15%, whereas non-filers will face a higher tax rate of 30%.
Savings Account Profits:
The income tax deducted from savings account profits has been increased from the previous rate of 10% to 15% for filers in the current fiscal year. Non-filers in this category will be subject to a higher tax rate of 30%.
Rent Income:
Tax rates ranging from 5% to 15% will be applicable to tax filers for rent income. Non-filers, on the other hand, will be subjected to a tax rate of 10% to 15% in the ongoing financial year.
Bonus Shares:
A tax rate of 10% will be charged on bonus shares for filers, while non-filers will face a higher tax rate of 20%.
Property Auctioned:
For the amount of property auctioned, tax filers will be charged a tax rate of 5%, whereas non-filers will have to pay 10%.
Motor Vehicle Leasing:
Filers will not be subjected to any tax on motor vehicle leasing, while non-filers will face a tax rate of 12%.
Motor Vehicle Registration:
Tax rates for motor vehicle registration will vary depending on the engine capacity. For filers, the tax rate will range from Rs10,000 to Rs0.5 million, whereas non-filers will face a higher tax rate of Rs30,000 to Rs1.5 million.
Token Tax on Vehicles:
Filers will be charged a token tax ranging from Rs800 to Rs10,000 for vehicles, while non-filers will have to pay a higher tax rate of Rs1,600 to Rs20,000.
Commission:
Filers will face a tax rate of 12% on commission, whereas non-filers will be subjected to a higher tax rate of 24%.
Banking Transactions:
Filers will not be taxed on banking transactions, whereas non-filers will face a tax rate of 0.6%.
International Transactions through Debit Cards:
For international transactions carried out using debit cards, filers will be charged a tax rate of 2%, while non-filers will face a higher tax rate of 10%.
Property Transactions:
Tax filers involved in property transactions will be charged a tax rate of 2%, whereas non-filers will face a higher tax rate of 7%.
Specific and General Services:
Filers availing specific services will face a tax rate of 3%, while non-filers will be subjected to a higher tax rate of 6%. Similarly, for general services, filers will face a tax rate of 7%, whereas non-filers will face a higher tax rate of 14%.
Power Consumers:
Power consumers with a monthly bill of Rs25,000 or more will not be taxed if they are filers. However, non-filers in this category will be subject to a tax rate of 7.5%.
These revised tax rates aim to encourage tax compliance and generate revenue for the government. The FBR’s decision will come into effect from July 1, 2023, and will be applicable until June 30, 2024.
Key Points:
- The Federal Board of Revenue (FBR) has released revised tax rates for filers and non-filers for the fiscal year 2023-2024.
- Tax rates have been adjusted for various categories, including prize bonds, savings account profits, rent income, bonus shares, property auctioned, motor vehicle leasing, motor vehicle registration, commission, banking transactions, international transactions, property transactions, and specific and general services.
- The revised tax rates aim to encourage tax compliance and generate revenue for the government.
Published in PakWeb, July 08, 2023.
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1 Comment
I am deeply worried about the recently announced revised tax rates by the FBR. With the already soaring inflation in the country, these increased taxes will undoubtedly burden the common man even further. It seems like the government’s approach to generating revenue is heavily reliant on the middle and lower-income segments, who are already struggling to make ends meet.
It is crucial for the government to consider the impact of these tax hikes on the lives of ordinary citizens and ensure that the burden is shared equitably. It is my hope that these measures will lead to a fairer and more sustainable tax system in the long run, but immediate relief for the common man is the need of the hour.