WHT collection from phones shows 431.3% growth

WHT collection from imports stands at Rs 31.185 billion in first quarter of 2013-14
WHT collection from phones shows 431.3% growth

ISLAMABAD: Withholding tax (WHT) collection from telephone including landline and mobile phone has phenomenal grown 431.3 percent mainly due to increasing 10-15 percent tax rates. 
According to the collection details contained in first quarterly review of the Federal Board of Revenue (FBR), withholding tax collection from telephone including landline and mobile phones have been recorded at Rs 10.174 billion in first quarter of 2013-14 as compared with collection of Rs 1.915 billion in same period last fiscal 2012-13, showing a growth of 431.3 percent.
Withholding tax collection from contracts have been recorded at Rs 24.744 billion in first quarter of 2013-14 as compared with collection of Rs 21.992 billion in same period last fiscal 2012-13, showing a growth of 12.5 percent.
Similarly, more than 44.1 percent growth was recorded in WHT on imports due to increase in rates through rationalisation of tariff and introduction of WeBoc which is a more automated and transparent system and better monitoring by directorate of withholding taxes. 
According to the collection details, withholding tax collection from imports has been Rs 31.185 billion in first quarter of 2013-14 as compared with collection of Rs 21.556 billion in same period last fiscal 2012-13, showing a growth of 44.7 percent.
Withholding tax collection from salary have been recorded at Rs 12.137 billion in first quarter of 2013-14 as compared with collection of Rs 9.989 billion in same period last fiscal 2012-13, showing a growth of 21.5 percent. 
The increase of 21.5 percent from salary has been attributed to revision of salary slabs and increase in the salaries of the government servants and better monitoring of the private salary persons.
Withholding tax collection from Bank Interests have been recorded at Rs 10.120 billion in first quarter of 2013-14 as compared with collection of Rs 7.599 billion in same period last fiscal 2012-13, showing a growth of 33.2 percent. Growth of 33.2 percent in bank interest was due to the consistent good performance by the banking sector, the report added.
Withholding tax collection from exports have shown a marginal increase of 19.3 percent in first quarter of ongoing fiscal year 2013-14 with total collection of Rs 5.782 billion as compared with Rs 4.848 billion collection in same period of last fiscal year 2012-13.
The increase of 59.6 percent in the collection from cash withdrawals is due to increased liquidity in economy and increased rates of cash withdrawals in the budget during current fiscal year. 
Due to the increase in WHT rate on cash withdrawal from banks, withholding tax collection from cash withdrawal have been recorded at Rs 3.936 billion in first quarter of 2013-14 as compared with collection of Rs 2.466 billion in same period last fiscal 2012-13, showing a growth of 3.3 percent.
Despite staggering increase in power tariff in the recent past, withholding tax collection from electricity have shown a negative growth of 8.9 percent with a total collection of Rs 3.438 billion in first quarter of ongoing fiscal year 2013-14 as compared with collection of Rs 3.772 billion in same period of last fiscal year.
The increase in the collection of dividends by 70.3 percent is mainly due to declaration of dividend by the companies due to increased economic activities and change in section 8 of Income Tax Ordinance through which dividend received by a corporate taxpayer in now taxable at the rate of 10 percent as fixed and final tax. The collection details show that withholding tax collection from dividends have been recorded at Rs 4.369 billion in first quarter of 2013-14 as compared with collection of Rs 2.566 billion in same period last fiscal 2012-13, showing a growth of 70.3 percent.
Total WHT collection amounted to Rs 117.501 in the first quarter of the ongoing fiscal year as compared with collection of Rs 84.600 billion in the same period of last fiscal projecting an increase of 38.9 percent.

comments powered by Disqus