SIALKOT

The Federal Board of Revenue (FBR) has stepped up its efforts to collect more than Rs1 billion as withholding tax from hundreds of contractors, suppliers and companies in Gujranwala Division.

According to FBR officials, it has also written letters to the divisional and district heads of these federal and provincial departments, advising them to ensure early deposit of the withholding tax payable on all the development and supply bills at the regional tax directorates in Sialkot and Gujranwala until June 30, 2016.

The senior officials added that these contractors, suppliers and companies were defaulter of the withholding tax amounting Rs1 billion. They are reluctant to pay withholding tax as per the recently increased ratio of 6.5 percent despite repeatedly issuance of the recovery notices.

The officials added that the FBR would get an additional income of Rs 250 million by collecting the withholding tax as per new ratio. They said that the FBR has written special letters to the divisional and district heads of Sialkot, Narowal, Gujrat, Mandi Bahaud Din, Hafizabad and Gujranwala districts, 21 Tehsil Municipal Administrations, administrators of the six district governments, local government department, Gujranwala Development Authority (GDA), WASA, Gepco, SNGPL, PTCL, irrigation department, federal and provincial highways departments, forest, buildings, education, health departments, district accounts officers and the regional and zonal heads of the banks to ensure the withholding tax collection.

The officials added that those paid their withholding tax as per the old ratio of 5 percent till the July 1st, 2015, have been advised by the FBR to ensure additional 1.5 percent more payment of their withholding tax on all of their development and supply bills according to the new ratio of 6.5 percent.