In a move to broaden the tax base, the Pakistani government has significantly increased the income tax rate for individuals who are not registered taxpayers (non-filers) when purchasing prepaid internet and phone cards. This new rate stands at a hefty 75% of the bill or sale price.
The details were unveiled in the recently released Budget 2024-25 documents. The government proposes changes to income tax withholding rates, specifically targeting non-filers who use mobile phone services. This new policy aims to encourage more people to file their income tax returns and contribute to the national revenue.
Previously, the tax rate on such services for non-filers was likely lower. The significant increase to 75% indicates a strong push by the government to incentivize registration and compliance with tax regulations.
