Finance Act 2019: Non-filers to pay higher taxes
Non-filers of tax would have to pay double in taxes than filers
PHOTO: BOUNDLESS
ISLAMABAD:
The federal government has maintained tax conditions for filers and non-filers with regard to profits on dividend and bank accounts, national saving schemes, capital gains on securities, dividends in cash and other similar receipts. On the other hand, non-filers of tax would have to pay double in taxes than filers. However, the Finance Act 2019 has used the terms ‘active taxpayer’ and ‘non-active taxpayer’ to refer to the two streams. The withholding tax for filers and non-filers earning less than Rs0.5 million per year in Azad Jammu and Kashmir (AJK) has been levied at 10% and 20% respectively. On the other hand, tax for AJK residents earning over Rs0.5 million per year stood at 15% for filers and 30% for non-filers. National Savings has already contacted the finance ministry in this regard, however, the response submitted by the ministry does not discriminate tax rates for filers and non-filers.
Published in The Express Tribune, July 10th, 2019.
The federal government has maintained tax conditions for filers and non-filers with regard to profits on dividend and bank accounts, national saving schemes, capital gains on securities, dividends in cash and other similar receipts. On the other hand, non-filers of tax would have to pay double in taxes than filers. However, the Finance Act 2019 has used the terms ‘active taxpayer’ and ‘non-active taxpayer’ to refer to the two streams. The withholding tax for filers and non-filers earning less than Rs0.5 million per year in Azad Jammu and Kashmir (AJK) has been levied at 10% and 20% respectively. On the other hand, tax for AJK residents earning over Rs0.5 million per year stood at 15% for filers and 30% for non-filers. National Savings has already contacted the finance ministry in this regard, however, the response submitted by the ministry does not discriminate tax rates for filers and non-filers.
Published in The Express Tribune, July 10th, 2019.