All of us should know the concept of withholding tax rates in Pakistan whose 2016 chart shows that they are going upward. It is for the information that it is a kind of income tax that is with held by using various type of services like on Cash Withdrawal. It is different for filers and non filers. Then this tax is usually and most of the time paid directly to the government from the customer side. In other words, we can say that this has been levied on income on all of the securities that have been owned by a filer and non filer. If we want to see our current and future financial health forecast then this withholding tax plays an important role for any country. In Pakistan, we define these taxes as a kind of act of deduction or you can say the collection of tax at source. This has the nature of an advance kind of tax payment.
It is seen that this has now become a global and countrywide phenomenon. Especially in Pakistan, it has now become one of the major and vital sources of the Federal revenue collected. It has been noticed that Pakistan is in the war state so the dependence on Withholding Taxes has been on the rise over the years. The government has also come up with an organization, so that they can monitor and also manage the system.
On services of cash withdrawal new Withholding Tax Rates in Pakistan are going up in 2016 that are mention in below chart:
- These Withholding Taxes have their own adjustable and also presumptive nature. They have now become a part of our tax system.
- It is beneficial for the government because these let them to provide revenue regularly for its expenditure and also for its operations.
- These are also helpful for the taxpayers because they give them this opportunity to discharge all of their obligations in some manageable kinds of installments.
- It is one of the most effective mechanisms to have on time source of total income. So far these taxes have the maximum contribution of total direct tax revenues.
We, has now heavy and massive reliance on this system because it gives best results. We need to update polices, in which alignment is most important things. Although for every country withholding tax are too much important but at same time its important for government that they must concerned with most effective community, like before increasing rates on cash withdrawal services in 2016 its important that govt concerned with Pakistan traders because they effected more then anyone else.