The Federal Board of Revenue (FBR) has asked Pakistan Banks Association (PBA) to direct all the banks that if any bank has still deducted tax @ 0.6 percent on July 13, 2015 onwards, the excess amount must be refunded/adjusted immediately. In this regard, the FBR has written a letter to Secretary General Pakistan Banking Association Karachi on withholding tax on bank instruments of non-filers.
According to the FBR letter to the PBA, the rate of Withholding Tax on bank instruments issued out of account has been reduced from 0.6 percent to 0.3 percent till September 30, 2015, through Presidential Ordinance dated 11.7.2015. It has been reported to FBR that some of the banks are still deducting tax on bank instrument of non-filers @ 0.6 percent. It is requested that Pakistan Banking Association may direct all the banks that if any bank has still deducted tax @ 0.6 percent on 13th of July, 2015 onwards, the excess amount must be refunded/adjusted immediately, the FBR letter added. The FBR Press release said: The rate of withholding tax on bank instruments issued out of account has been reduced from 0.6 percent to 0.3 percent till 30 -9-2015, through Presidential Ordinance dated 11.7.2015.
It has been reported to FBR that some of the banks are still deducting tax on bank instrument of non-filers @ 0.6 percent. FBR has directed the banks that if any bank has still deducted tax @ 0.6 percent on 13th of July, 2015 onwards, the excess amount must refunded/adjusted immediately, the FBR added.