ISLAMABAD: The federal government has lowered the withholding tax rate for mobile services from 12 percent to 10 percent in the 2021-22 budget, ARY News reported on Friday.
The government has decided to ease the financial burden on the common man by lowering the WHT tariff for mobile services. It was proposed to implement the gradual withdrawal of WHT.
In the budget for the new financial year, the federal consumption tax (FED) was levied on three-minute mobile phone calls, internet data and SMS. The federal authorities have decided to generate adequate income from the telecommunications sector after a visible development.
According to the government, a large part of the population is subject to a nominal tax under the federal excise tax (FED).
Finance Minister Shaukat Tarin presented the federal budget for 2021-22 at the National Assembly (NA) today.
Read: FY2021-22: Federal Budget Announced of Rs8.5tr with Historic PSDP Allocation
During his budget speech, Tarin said that Pakistan’s Tehreek-e-Insaf government inherited a crumbling economy that forced the government to make tough decisions.
“PM Khan has taken the sick economy off the intensive care unit with his difficult decisions,” he said, adding that the Prime Minister is not afraid to make the difficult decisions.
Shaukat Tarin shared the reigning government’s achievements during the budget speech that tax levies rose 18 percent last year as the country exceeded the tax levy limit of Rs4000. “We got 75 percent more tax refunds,” he said.
With an increase of 36.4%, the federal government has proposed 900 billion rupees for the development budget for the budget year 2021-22.
The federal government is forecasting a growth rate of the gross domestic product (GDP) of 4.8% for the coming budget year 2021-22.