Omission of withholding tax provisions
There were 38 withholding tax provisions in the Income Tax Ordinance, 2001. This high number of provisions adds to complexity and creates undue burden of compliance on different withholding agents. It also impacts country’s rating on the ease of doing business index. In an effort to augment ease of business and simplify the tax laws following withholding taxes have been omitted.
| Provision | Description | Sector |
| 153B | Collection of tax on payment of royalty to residents | Royalty |
| 231A | Collection of tax on cash withdrawal | Banking Sector |
| 231AA | Collection of tax on banking instruments | Banking Sector |
| 236P | Collection of tax on banking transactions other than through cash | Banking Sector |
| 236Y | Collection of tax from persons remitting amounts abroad through credit or debit or prepaid cards. | Banking Sector |
| 236B | Collection of tax on domestic air travel | Airlines |
| 236L | Collection of tax on international air travel | Airlines |
| 236V | Collection of tax on extraction of minerals | Mining Sector |
| 233A | Collection of tax from members by a stock exchange registered in Pakistan | Capital Market |
| 233AA | Collection of tax on marginal financing by NCCPL | Capital Market |
| 234A | Collection of tax from CNG stations | CNG Sector |
| 236HA | Collection of tax on certain petroleum products | Certain petroleum products |
Merger of withholding tax provisions
Additionally, following withholding tax provisions have been merged with other provisions to reduce complexity of law:
| Provision | Description | Merged with |
| 150A | Deduction of tax on return on investment in Sukuks | Merged in section 151 for residents and in section 152 for non-residents which deal with such payments |
| 152A | Deduction of tax on payments for foreign produced commercials | Merged with section 152 which deals with payments to non-residents |
| 236S | Collection of tax on dividend in specie | Merged with section 150 which deals with dividend |
Omissions | Merger | Withholding Tax Rates | Tax Provisions | FBR | Federal Board of Revenue | IRS | Income Tax Returns |
