June 09, 2023 (MLN): To increase revenue collection and at the same time provide relief to overseas Pakistanis, government has decided to give tax concessions for overseas Pakistanis in the budget proposal for FY24.
According to the official document made available to MG Link News, it has been proposed to give tax concessions for overseas Pakistanis.
Addtionally, reducing the withholding tax rate on rental income from Pakistanis living abroad from 2% to 1% was proposed, as per the document.
Another proposal was to increase taxes on the use of debit and credit cards for purchasing dollars abroad, while increasing the tax from 1% to 5% on payments made in dollars using credit and debit cards.
Moreover, increasing the tax on offshore digital services from 10% to 15% was proposed.
On the other hand, fixation of 10% tax on rental income of overseas Pakistanis of Rs20 million annually was proposed.
On the manufacturing side, a prroposal to increase the tax on the supply of construction materials is propsed to increase to 5% from 4%, and the tax on contractors to be increased from to 5.5% from 4.5% for a period of 7 years.
Lastly, introduction of a 1% super tax on profits ranging from Rs150m to Rs200m annually, as per the document.
