Govt decides to remove withholding tax on education and event charges in the next fiscal year’s budget to limit the burden on the masses.
Besides considering that that the withholding tax is the primary source of revenue for the Federal Board of Revenue’s (FBR), according to sources in the Large Taxpayers Office (LTO) Karnataka. As a result, they predict that 8 to 10 withholding taxes will be eliminated in the upcoming budget.
The FBR decides to cancel a number of withholding tax laws in order to ease the burden on taxpayers and offer relief to the general public. The FBR checked withholding tax provisions under the Income Tax Ordinance 2001, according to LTO reports. They claim that a number of provisions are resulting in low revenue and causing taxpayer hardship.
According to reports, the FBR would propose removing around 8-10 withholding tax clauses from the ordinance in the upcoming budget 2021/22.