What’s at Stake Advance withholding tax imposed upon users of cellular mobile networks under the Income Tax Ordinance, 2001 imposes a heavy burden upon the average citizen. This is especially
Advance withholding tax imposed upon users of cellular mobile networks under the Income Tax Ordinance, 2001 imposes a heavy burden upon the average citizen. This is especially so given the difficult economic circumstances faced by a majority of the population during the time of a global pandemic caused by Covid19. Although a withholding tax of 12.5 percent is collected as advance tax from all users of cellular services, this tax is imposed regardless of the user’s income tax liability. Meaning that while a person may be earning a non-taxable income, he or she, being a non-filler would not be able to claim back the amount paid as withholding tax. The withholding tax imposed as advance tax under the Income Tax Ordinance, 2001 is in addition to General Sales Tax and Federal Excise Duty that users are obliged to pay under various Provincial and Capital Territory laws respectively.
PILAP has written to the Ministry of Information Technology and the Finance Division advocating the following recommendations:
What’s at Stake Advance withholding tax imposed upon users of cellular mobile networks under the Income Tax Ordinance, 2001 imposes a heavy burden upon the average citizen. This is especially
What’s at Stake The Excise, Taxation and Narcotics Department of the Government of Sindh had been withholding tax token stickers and registration number plates for vehicles despite the tax for