Finance Bill 2024: Salaried Class Tax Relief Uncertain, Telecom Sector Pushes Back

Uncertain Fate for Salaried Class Tax Relief

The Federal Board of Revenue (FBR) chairman, Amjed Zubair Tiwana, has cast doubt on potential tax relief for salaried individuals under Pakistan's Finance Bill 2024. During a media interaction, he declined to confirm revisions to proposed tax slabs, leaving the increased taxation on salaried class in limbo.

Telecom Sector Objects to Proposed Measures

While the fate of tax relief for salaried individuals remains unclear, the Senate Standing Committee on Finance has intervened on behalf of the telecom sector. The committee has directed the FBR to collaborate with telecom operators to review proposed measures deemed burdensome for the industry.

Key Concerns of the Telecom Sector:

• 75% Advance Tax on Non-Filers: The telecom sector objects to the proposed 75% advance tax collection on mobile services for non-filers. Operators argue this will create operational difficulties and potentially lead to legal disputes.
• Penalizing Enablers (Telecom Sector) for ITGO Compliance: The industry opposes being penalized for non-compliance with Income Tax General Orders (ITGO) regarding blocking SIMs of non-filers. They claim they lack the infrastructure to handle such complexities.
• Technical Challenges with Multiple Tax Rates: The current telecom infrastructure reportedly cannot handle multiple tax rates for filers and non-filers. Implementing these changes is seen as leading to inefficiencies and increased consumer costs.

Telecom Sector Proposes Collaboration and Gradual Implementation

The telecom operators suggest collaborative efforts to raise tax compliance awareness. They advocate for a gradual implementation of new policies rather than abrupt changes that may negatively impact the industry.

This article was published at Pakistan Yet to Decide on Reversing Tax Increase for Salaried Class