In order to reduce the burden of taxation on the public, the government decided to eliminate withholding taxes on education and event fees in the next fiscal year’s budget.
Despite the fact that the withholding tax is the Federal Board of Revenue’s (FBR) primary source of revenue, a number of withholding taxes produce negligible revenue, 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 intended to repeal 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.
