The majority of Pakistanis are non-filers, and the new budget imposed heavy taxes on them.
In our blog section, we have provided detailed coverage of the latest federal budget. If you haven’t already, you can read the budget-related blogs linked at the bottom. However, this particular blog will focus on the impact of the latest budget on non-filers, who are subject to significant taxation. If you are a non-filer, it is essential for you to read this blog to understand how this budget will affect you.
The following tax rates will be in effect from July 1, 2023, to June 30, 2024.
Prize bonds: Filers will be taxed at 15%, while non-filers will face a rate of 30%.
Savings account profits: The income tax deduction will be 15% for filers (previously 10%) and 30% for non-filers.
Rent income: Tax rates for filers will range from 5% to 15%, and for non-filers, it will be 10% to 15%.
Bonus shares: A tax rate of 10% will be charged, increasing to 20% for non-filers.
Property auctioned: Tax rates for filers will be 5%, and for non-filers, it will be 10%.
Motor vehicle leasing: Filers will have no tax, while non-filers will be charged 12%.
Motor vehicle registration: Tax rates will vary from Rs10,000 to Rs.0.5 million based on engine capacity for filers, and Rs.30,000 to Rs.1.5 million for non-filers.
Token tax on vehicles: Filers will pay between Rs.800 to Rs.10,000, and non-filers will be charged Rs.1,600 to Rs.20,000.
Banking transactions: Filers will have no tax, but non-filers will be charged 0.6% on transactions.
International transactions with debit cards: Filers will be taxed at 2%, and non-filers will face a rate of 10%.
Property transactions: Filers will be taxed at 2%, and non-filers will face a rate of 7%.
Specific services: Filers will be charged 3%, and non-filers will be subject to a rate of 6%.
General services: Filers will be charged 7%, and non-filers will face a rate of 14%.
Power consumers with monthly bills of Rs.25,000: Filers will have no tax, while non-filers will be charged 7.5%.
Understanding the intricacies and complexities of taxes can be challenging for many individuals. Therefore, we provide a list of tax consultants on our site, which can be helpful for those seeking expert assistance.
After reviewing the revised tax rates, you may come to the realization that becoming a filer is in your best interest. To know more about how to become a filer, read: How to Become a Filer in Pakistan – A Guide for Businesses AND How to Become a Filer in Pakistan: A Guide for Salaried Individuals
Suggested blogs for you:
Budget Breakdown: The Most Noteworthy Features of 2023-24 Budget
Accelerating Forward: How Pakistan Budget 2023-24 Can Impact the Automobile Industry?
Budget FY24: What’s Becoming Pricier and What’s Going Down
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