ISLAMABAD: Proposal Made to Raise Tax on Debit and Credit Card Transactions for Dollar Payments. A proposal has been put forward to increase the tax imposed on the utilization of debit and credit cards for transferring dollars out of the country.
According to reliable sources, the budget outlines an elevation in the tax rate for offshore digital services, from 10% to 15%. Additionally, tax concessions for overseas Pakistanis have been introduced, including a reduction in the withholding tax rate on rental income from 2% to 1%.
Moreover, the proposal suggests a decrease in the withholding tax from 2% to 1% for property purchases made by overseas Pakistanis. Additionally, a fixed 10% tax on the annual rental income of overseas Pakistanis is being proposed.
Furthermore, the budget aims to raise the tax on the supply of construction materials from 4% to 5%. It also suggests increasing the tax rate on contractors from 4.5% to 5.5% for a duration of 7 years. Finally, a 1% super tax is proposed on profits ranging from Rs 15 crore to 20 crore per annum.
Published in PakWeb, June 9th, 2023.
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