ISLAMABAD: The Federal Board of Revenue and members of the business community reached an agreement on Thursday to reduce withholding tax from 0.6 percent to 0.3 percent on banking transactions for non-filers of income tax returns.
The new rate will be in force till September 30, the last date for filing income tax returns for the tax year 2015.
The agreement on four issues was reached at a meeting of the 19-member committee constituted by Finance Minister Ishaq Dar on Wednesday.
The finance minister told journalists that the reduced rate would expire on Sept 30 and from Oct 1 the original rate of 0.6pc would be charged.
The meeting urged the non-filers to file returns before the deadline. Under the agreement, the list of filers will be updated every 24 hours.
The tax does not apply to filers of income tax returns.
Finance Minister Dar said the decision about 0.6pc withholding tax was part of the financial bill. For any relaxation in it, the matter has to be taken to parliament.