LAHORE MIRROR — The Federal Board of Revenue (FBR) has increased the withholding tax (WHT) on payments to non-resident persons through debit cards and credit cards by 400%.
The move aims to discourage outflows of foreign exchange reserves.
In a circular issued last week and titled “number 2 of 2023 for explaining amendments to the Finance Act 2023”, the FBR wrote that section 236Y was introduced through Finance Act 2022, whereby payment to non-residents through a debit/credit card was subjected to 1% withholding tax rate for Active Taxpayer List (ATL) persons and 2% for Non-ATL persons.
