ISLAMABAD: The Federal Board of Revenue (FBR) has issued instructions to agents for deduction and collection of withholding taxes from filers and non-filers of tax returns.

An income tax circular no. 1 of 2015 issued here on Thursday made broader distinction between filer and non-filers.

The filer means a taxpayer whose name appears in the active taxpayers list issued by the board from time-to-time or is holder of taxpayer’s card, while non-filer means a person who is not a filer of income tax return.

The concept of higher rates for non-filer has been notified through an SRO136 of 2015, which was further extended to two more sectors — import and services.

According to the circular, those industrial undertakings which are neither on Active Taxpayers List (ATL) nor the holders of taxpayer’s card and are importing remeltable steel and directly reduced iron for its own use will be charged withholding tax at 1.5pc of the import value as increased by the customs duty, sales tax and FED whereas filers will continue to pay at 1pc.

Those persons who are importing potassic fertilisers are neither on ATL nor the holders of taxpayer’s card will be charged tax at 1.5pc of the import value as increased by the customs duty, sales tax and FED whereas filers will continue to pay at 1pc.

And those persons who are importing urea and are neither on ATL nor the holders of taxpayer’s card will be charged at 1.5pc of the import value as increased by the custom duty, sales tax and FED whereas filers will continue to pay at 1pc.

Those manufacturers, who are neither on ATL nor the holders of taxpayer’s card will be charged at 1.5pc of the import value as increased by the customs duty, sales tax and FED whereas filers will continue to pay at 1pc.

Those persons who are importing pulses and are neither on ATL nor the holders of taxpayer’s card will be charged at 3pc of the import value as increased by the custom duty, sales tax and FED whereas filers will continue to pay at 2pc.

The commercial importers who are neither on ATL nor the holders of taxpayer’s card will be charged tax at 4.5pc of the import value as increased by the custom duty, sales tax and FED whereas filers will continue to pay at 3pc.

Those ship-breakers, who are importing ships and are neither on ATL nor will the holders of taxpayer’s card be charged tax at 6.5pc whereas filers will continue to pay at 4.5pc.

Importers who are industrial undertakings and are not covered are neither on ATL nor the holders of taxpayer’s card will be subject to collection of tax at 8pc whereas industrial undertaking falling in this category which is on ATL or holders of taxpayers card will continue to pay at 5.5pc.

The importers which are companies and are neither on ATL nor the holders of taxpayer’s card will be charged tax at 8pc whereas importers in this category which are on active taxpayers list or holders of taxpayer’s card will continue to pay at 5.5pc.

Persons who are neither on ATL nor the holders of taxpayer’s card will be charged tax at 9pc whereas filers in this category will continue to pay at 6pc.

Those companies which are neither on ATL nor the holders of taxpayer’s card will be charged tax at 12pc whereas filers will continue to pay at 8pc.

Persons other than companies which are neither on ATL nor the holders of taxpayer’s card will be charged at 15pc whereas filers under this category will continue to pay at 10pc.

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