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Proposals for heavy fines and penalties for traders who are not registered with the Tajir Dost application

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ISLAMABAD (Qudrat Daily) The federal government is considering proposals to impose more penalties, including imposing heavy fines on traders who are not registered with the Tajir Dost app in the upcoming budget.
According to sources, the Federal Board of Taxation has started reviewing changes in tax laws to take action in the upcoming budget against those who do not join the trader-friendly app, unregistered traders will be issued notices and fined up to Rs 10,000 for non-registration on the app may be unregistered businesses prosecuted under Section 182 of the Income Tax Ordinance.
Sources said the upcoming budget is also considering a proposal for higher taxation of cash withdrawals from defaulting entities, under which advance tax on bank withdrawals above Rs 50,000 from defaulting entities will be increased. 0.6% to 0.9% is recommended.
FBR sources say more than Rs 15 billion is estimated to be collected from the increase in advance tax on cash withdrawals of non-filers. In the upcoming budget, it is also proposed to increase the tax on the import of unnecessary and luxury goods.
Sources further state that the budget is likely to increase the tax on imported vehicles above 1300 cc In the upcoming budget, it has been proposed to raise the withholding tax on all new vehicles above 850 cc to basic and luxury items.
In addition, according to a document available to Express, the Federal Board of Taxation has granted a 10 percent exemption from withholding tax to companies investing in Pakistan on remittance of dividends equal to the value of the investment made in foreign currency and up to June 30, 2026. So far, there have been other proposals to concessions in duties and taxes, including the provision of a 10% loan for investments in equipment and machinery, rejected.
According to the document FBR says that due to the IMF program, it is not possible to provide discounts and exemptions from taxes and duties A mechanism has been designed to facilitate the transfer to sponsoring companies, therefore, the relief of 10% withholding tax cannot be provided. repatriation of dividends equal to the value of the investment made in foreign currency.
According to the FBR, this is because the standby program entered into with the IMF stipulated that no preferential treatment or concessions would be given. It is also said that on the recommendation of the IMF, the 10 percent credit for investment in plant and machinery has been reduced from 10 percent to zero from 2019, so it cannot now be renewed until 2026.
According to the document on the proposal to reduce the withholding tax rate for the importation of capital goods and machinery to five and a half percent, the Federal Tax Office stated that exemption from withholding tax by making an advance payment on capital goods and machinery tax
However, the FBR has agreed to a proposal for partnership and integration between the Ministry of Commerce, Federal Revenue and SIFC to avoid under-invoicing and besides, a mechanism is likely to be formulated in the next budget. tax net, except for the elimination or reduction of tax credits in the previous schedule.

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