C.No.2(1)Chief (ITP)/2015
Government of Pakistan
(Revenue Division)
Federal Board of Revenue
***
Islamabad, the 18th February, 2015
Circular No. 01 of 2015
(Income Tax)
Subject:
Clarifications regarding amendments in the rates of WHT under section 148
and 153(1) (b) of the Income Tax Ordinance, 2001 brought through SRO
136(I)/2015 dated 13 February 2015
Though Finance Act 2014, a distinction was created amongst filers and non filers and
higher rates of WHT were levied on non filers to increase their cost of doing business.
Accordingly higher rates of WHT were imposed on non-filers in respect of vehicle registration or
purchase, dividend, interest, cash withdrawal and purchase and sale of immovable property. The
terms ‘Filer’ and ‘non-Filer’ were also defined through insertion of the following clauses in
section 2(23A) and 2(35C).

“filer” means a taxpayer whose name appears in the active taxpayer’s list issued by the
board from time to time or is holders of taxpayer’s card

2.
“non filer” means a person who is not a filer
Through issuance of SRO 136(I)/2015, the concept of higher rates for non filers has been
extended to two more sectors i.e. import and services. Salient features of the subject SRO
regarding application of Withholding tax under section 148 and 153(1) (b) of the Income Tax
Ordinance, 2001 for filers and non-filers are explained as under:
i)
Withholding tax on Import under section 148.
(a)
Those Industrial undertaking which are neither on Active Taxpayer List nor the
holders of taxpayer’s card and are importing remeltable steel (PCT Heading
72.04) and directly reduced iron for its own use will be charged WHT @ 1.5% of
the import value as increased by the custom duty, sales tax and FED whereas
filers will continue to pay WHT @ 1%.
(b)
Those Persons who are importing Potassic Fertilizers in pursuance of Economic
Coordination Committee of the Cabinet’s decision No ECC- 155/12/2004 dated
the 9th December, 2004 and are neither on Active Taxpayer List nor the holders of
taxpayer’s card will be charged WHT @ 1.5% of the import value as increased by
the custom duty, sales tax and FED whereas filers will continue to pay WHT @
1%.
(c)
Those Persons who are importing urea and are neither on Active Taxpayer List
nor the holders of taxpayer’s card will be charged WHT @ 1.5% of the import
value as increased by the custom duty, sales tax and FED whereas filers will
continue to pay WHT @ 1%.
(d)
Those Manufacturers who are covered under Notification No. S.R.O.
1125(I)/2011 dated the 31st December, 2011 and are neither on Active Taxpayer
List nor the holders of taxpayer’s card will be charged WHT @ 1.5% of the
import value as increased by the custom duty, sales tax and FED whereas filers
will continue to pay WHT @ 1%.
(e)
Those Persons who are importing pulses and are neither on Active Taxpayer List
nor the holders of taxpayer’s card will be charged WHT @ 3% of the import
value as increased by the custom duty, sales tax and FED whereas filers will
continue to pay WHT @ 2%.
(f)
Those Commercial importers who are covered under Notification No. S.R.O.
1125(I)/2011 dated the 31st December, 2011 and are neither on Active Taxpayer
List nor the holders of taxpayer’s card will be charged WHT @ 4.5% of the
import value as increased by the custom duty, sales tax and FED whereas filers
will continue to pay WHT @ 3%.
(g)
Those ship breakers who are importing ships and are neither on Active Taxpayer
List nor the holders of taxpayer’s card will be charged WHT @ 6.5% whereas
filers will continue to pay WHT @ 4.5%.
(h)
Importers who are industrial undertaking and are not covered under (a) to (g)
above and are neither on Active Taxpayer List nor the holders of taxpayer’s card
will be subject to collection of WHT @ 8 % whereas industrial undertaking
falling in this category which are on active taxpayers list or holders of taxpayers
card will continue to pay WHT @ 5.5%.
(i)
Importers which are companies and are not covered under Sr. (a) to (h) above and
are neither on Active Taxpayer List nor the holders of taxpayer’s card will be
charged WHT @ 8% whereas importers in this category which are on active
taxpayers list or holders of taxpayer’s card will continue to pay WHT @ 5.5%.
(j)
Persons who are not covered under Sr. (a) to (j) above and are neither on Active
Taxpayer List nor the holders of taxpayer’s card will be charged WHT @ 9%
whereas filers in this category will continue to pay WHT @ 6%.
ii)
Withholding tax on services under section 153(1)(b).
a)
Those companies which are neither on Active Taxpayer List nor the holders of
taxpayer’s card will be charged WHT @ 12% whereas filers will continue to pay
WHT @ 8%.
b)
Persons other than companies which are neither on Active Taxpayer List nor the
holders of taxpayer’s card will be charged WHT @ 15% whereas filers under
this category will continue to pay WHT @ 10%.
3.
All Chief Commissioners are requested to bring the above changes in the knowledge of
all withholding agents through correspondence and holding of seminars/ workshops and to
reinforce the existing mechanism of monitoring of withholding taxes.
(Arshad Nawaz Chheena)
Secretary (IR-Policy)
Distribution:
1.
2.
3.
4.
5.
SA to Chairman FBR
All members of FBR (HQs)
All Chief Commissioners of Inland Revenue
All Chief Collectors of Customs
Webmaster to place the circular on FBR web portal