Advance WHT for Debit and Credit Card- Budget 2022-23

Federal Govt has presented the budget for the fiscal year 2022-23 in National Assembly today on 10th June 2022.

The budget’s focus is to revive the stagnant economy, reduce expenditures and increase taxation.

The ministry of finance identifies new venues for taxation.

The Banking companies are already paying 39% taxes which now rose by 3%.

Earlier the Banking companies were paying 35% taxes plus 4% Super tax.

Now Super tax will be 7% and the total tax on banking companies as per budget 2022-23 will be 42%.

Moreover, the consumers will pay tax on debit and credit card transactions if such transactions are at the international level.

It means if money is transferred from Pakistan to abroad using a debit or credit card then there will a Withholding tax on such transactions.

This WHT will be different for filers who appear on the Active taxpayer list and Non-Filer who does not appear on the Active Taxpayer list.

If the customer uses a Credit card or debit card for local shopping and money transfer then there will be no WHT.

Miftah Ismail the finance minister presented the budget today in National Assembly.

The focus of the budget is to reduce the burden on the poor and to tax more on the rich whose income is higher.

The main objective of the budget to revive the economy and get a growth rate of almost 5%.

The Govt faces a huge economic crisis and budget deficit.

Also Read: Government Planning to impose Increased Tax on Freelancers in Pakistan

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