The Federal Government of Pakistan is considering tax hikes on people who haven’t filed their returns, especially on deposits and earnings from bank accounts. People familiar with the situation said that the International Monetary Fund (IMF) has recently pushed Pakistani authorities to raise the withholding tax rate on debt-related profits for non-filers.
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Currently, non-filers of debt profits are subject to a thirty percent withholding tax rate from the government. There is much conjecture, though, that this rate might be raised even higher to increase the financial burden on individuals who don’t follow tax laws.
In addition, sources disclosed that the government intends to increase taxes to five percent on dividend income received from mutual funds. Furthermore, it is anticipated that the capital gains tax on investments made in mutual funds will increase to 10% when the fund makes at least half of its revenue from debt-related profits.
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These prospective tax changes demonstrate the government’s commitment to encouraging tax compliance and complying with guidelines issued by global financial organizations such as the IMF. If implemented, these government taxation policies might greatly affect the economy by encouraging non-filers to follow the law and possibly increasing government revenue.
