representations from the business community, initiated the WHT
suspension request in 2017 after the Income Tax Law was amended by Royal Decree No.
The agreement will allow the JMT to support WHT
in its conservation management and WHT
will, in turn, help JMT develop policy and management practices through sharing experiences gained in community-led conservation management.
Since the second bill could not be passed before Mar 12, the requirement of monthly WHT
filing was still in place and therefore, most withholding agents continued filing it for February, whose due date fell on March 15.
'As per prevailing taxation rules, the advance WHT
on stockbrokers has been removed with effect from February 1 and we (stockbrokers) have become liable to pay 12% tax on commission from February 1 till the anomaly is fixed,' he said.
In case the tax authority accepts the accounting treatment followed under IFRS 16, then the question will be whether WHT
should be accounted for at the time the operating lease payments are due or on the recognition of liability associated with the ROU asset.
However, they said that the major issue of vast disparity in WHT
and Sales Tax on import of Raw Materials by Commercial Importers and Manufacturers remains unresolved, they noted while referring to KCCI's proposals in this regard which were aimed at rationalization, removal of a major anomaly and significant increase in revenue for the exchequer, while also some other important proposals have not been included in the Supplementary Bill.
He said that the Minister further agreed to withdraw Sales Tax and WHT
on sales of used/second hand Capital goods/ Textile machinery by Manufacturers / Local traders and also assured that Final Tax Regime (FTR) for Commercial Importers will be restored in the upcoming Finance Bill.
It was also agreed on the occasion that there was need to withdraw sales tax and WHT
on sales of used/second hand capital goods/ textile machinery by manufacturers/local traders.
The response further added that the WHT
was previously charged at 14.5pc which was brought down to 12.5pc.
Moreover, official sources shared the tax regulator had gathered over Rs47 billion from 12.5 percent WHT
on mobile phones in last financial year translating to a monthly collection of Rs4 billion per month.
No further details about what happened have been released by the police.