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Proposals for heavy fines and punishments on traders who are not registered under Tajir Dost app

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Proposals for heavy fines and punishments on traders who are not registered under Tajir Dost app

Islamabad: The federal government is considering proposals to introduce other penalties including imposing heavy fines on traders who are not registered under the Tajir Dost app in the upcoming budget.

According to the sources, the Federal Board of Revenue has started reviewing the amendments in the tax laws to take action against those who do not join the Trader-Friendly App in the upcoming budget, under which the registered in the Trader-Friendly App under the proposed amendments in the upcoming budget. Non-registered traders will be issued notices and fined up to Rs 10,000 for non-registration with the app, unregistered businesses may be prosecuted under Section 182 of the Income Tax Ordinance.

Sources say that in the next budget, a proposal to impose more tax on cash withdrawals from banks by non-filers is also under consideration, under which the advance tax on withdrawals of more than Rs 50,000 from banks by non-filers will be increased from 0.6% to 0.9%. is suggested.

FBR sources say that it is estimated to collect more than 15 billion rupees from the increase in advance tax on cash withdrawals of non-filers. In the upcoming budget, it has also been proposed to increase the tax on the import of non-essential and luxury items.

Sources further say that the budget is likely to increase the tax on imported vehicles of more than 1300 cc. In the upcoming budget, it has been proposed to increase the withholding tax on all new vehicles of more than 850 cc. Duty is also likely to be increased on essential and luxury items.

Apart from this, according to a document available to Express, the Federal Board of Revenue has given 10 percent withholding tax exemption to companies investing in Pakistan on remittance of dividends equal to the value of the investment made in foreign currency and until June 30, 2026. Till now, other suggestions of concessions in duties and taxes including giving 10% credit on investment in plant and machinery have been rejected.

FBR says that due to the IMF program, discounts and exemptions in taxes and duties cannot be given. According to the document, FBR says that the amount of dividend to the companies established in the country in the State Bank of Pakistan is transferred abroad. A mechanism has been devised to facilitate the transfer to the sponsor companies, therefore relief of 10% withholding tax cannot be given on repatriation of dividend equal to the value of the investment made in foreign currency.

According to the FBR, this is because the standby arrangement program concluded with the IMF stipulated that no preferential treatment or concessions would be given. It is also said that on the recommendation of the IMF, the 10 percent credit on investment in plant and machinery was reduced from 10 percent to zero from 2019, so now it cannot be restored again until 2026.

According to the document, the Federal Board of Revenue has said regarding the proposal to reduce the rate of withholding tax imposed on import of capital goods and machinery to five and a half percent, that the withholding tax exemption by depositing the advance tax imposed on the import of capital goods and machinery. can be obtained

However, FBR has agreed to the proposal of partnership and integration between Ministry of Commerce, Federal Board of Revenue and SIFC to prevent under-invoicing and a mechanism is likely to be formulated in this regard in the next budget. Apart from this, the FBR has also agreed to proposals to increase the capacity of the FBR to impose a 10% tax on non-productive sectors and widen the tax net, in addition to abolishing or reducing tax concessions in the previous schedule. What is agreed?

Proposals for heavy fines and punishments on traders who are not registered under Tajir Dost app

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