Business
Govt imposes 2% tax on Non-filers for payments via debit and credit cards
The advance withholding tax rate for filers will be one percent, and two percent for non-filers
Islamabad: The federal government has imposed a two percent tax on non-filers for payments via debit and credit cards.
According to details, an advance withholding tax will be levied on international payments (money sent out of Pakistan) through credit cards, debit cards, and pre-paid cards.
The federal Minister for Finance, Miftah Ismail, said during the presentation of the budget 2022–23 that the tax rate will be different for tax-filers and non-filers. The advance withholding tax rate for filers will be one percent, and two percent for non-filers. It will also be adjustable against the due tax.
There are several services and cards available in Pakistan that are compatible with international payments. Pakistanis send money abroad through multiple channels for a variety of reasons, including online shopping, trade, etc.