Withholding Tax Rates In Pakistan 2024 Time To Revisit The Withholding Tax Policy

It is a fact that this withholding tax has now become unfair, regressive, and too repressive. This tax is now discouraging massively all of the financial transactions that are made and carried out by the banking channels. It is negatively affecting the base of bank deposits which should be expanded so that domestic investment can be increased. According to the report of Moody’s, the fiscal strength of Pakistan is given a Negative grade. The reason they have given is that Pakistan debt burden is getting increased day by day. More details about these Withholding Tax Rates In Pakistan 2024 Time To Revisit The Withholding Tax Policy should be changed a little bit!

Withholding Tax Rates In Pakistan 2024 Time To Revisit The Withholding Tax Policy

Because of this tax policy, our country Pakistan is witnessing one of the lowest savings rates so far in their region. It is reported that most of people now prefer to put and stack up their cash in their homes rather than depositing their money in banks. An alternative choice is given and proposed that the levy on students and farmers, and the levy on retired people and widowers should be removed. The Central Bank of Pakistan has shown this concern that the National Financial Inclusion Strategy is negatively affecting the farmers. They cannot claim their WHT fund. However, the State Bank of Pakistan has taken no suitable notice of this issue.

Budget Strategy Paper 2024 Pakistan

This Withholding tax is adversely affecting all of the vulnerable segments and regions of Pakistan. Business people make an adjustment in this tax and then they pass on the burden to the rest of the consumers. Consumers mainly bear the burden of this WHT system Withholding Tax Rates In Pakistan 2024 Time To Revisit The Withholding Tax Policy.

In Direct taxes, the contribution of WHT tax is about 60% to 70%. Though the tax collection has seen an increase to about 60% in the past 3 years at the same time, common citizens have also been burdened.

In our country, rich people are taxed in a lighter way and poor people are taxed in a disproportionate way. We need to change the nature of this Withholding Tax Rates In Pakistan 2024 Time To Revisit The Withholding Tax Policy. The purchasing power of these common citizens is getting eroded and destroyed because of this tax system. Let us hope that tax experts and professionals, bring a suitable and sensible change in their tax system by considering the major concerns of the common people of Pakistan.