Senate body okays 75% withholding tax on non-filers' phone and internet connections

The Senate Standing Committee on Finance has endorsed a significant 75% withholding tax on phone and internet services for non-filers.

This decision, reached during a meeting presided over by Senator Saleem Mandviwalla, also includes proposals to reduce tax slabs for the salaried class while raising overall tax rates.

During the session, extensive discussions took place regarding various tax proposals, with committee members evaluating their potential impact on the economy and the public.

Nevertheless, the committee dismissed the proposal to grant the National Database and Registration Authority (NADRA) access to parliamentarians' tax records for collection purposes.

This rejection was driven by concerns about data security, with Anusha Rehman expressing worries about NADRA's data management safety.

Despite the Strategic Implementation and Forecasting Cell (SIFC) pushing for the transfer of data to NADRA, particularly concerning grade 17 to 22 officers, the committee stood firm against including politicians' records.

Additionally, the committee deliberated on provisions for late filers in property transactions, with the Chairman of the Federal Board of Revenue (FBR) stressing the need for a balanced tax rate between filers and non-filers.

The proposal to raise the capital gains tax on property to 15% starting July 1 was postponed, and the committee also rejected extending tax exemptions for the Federally Administered Tribal Areas (FATA) and the Provincially Administered Tribal Areas (PATA) for another year.

The FBR chairman highlighted the government's opposition to the continued exemptions for FATA and PATA, noting potential complications for the industrial sector. Despite these concerns, the committee chose not to prolong the tax reliefs.