A one percent increase in all withholding tax rates is proposed by the Federal Board of Revenue (FBR) to take effect on October 1, provided that revenue shortages continue until September 2024.
According to sources, this proposal was created at the FBR level to raise withholding tax rates in the event that the agency does not reach its tax collection goals in the last month of the first quarter, which runs from July to September for the fiscal year 2024–2025, as reported by Business Recorder.
A supplemental Finance Bill would be used to adopt the provision if the FBR fails to meet its September target. Now, the outcome depends on tax collectors reaching their September targets; if not, there may be an additional hike in withholding tax rates in October.
