Imposition of additional tax on air travellers proposed

A number of proposals have been made in the draft of the federal budget for the financial year with focus on changes in the tax regime to generate revenue, 2023-24, reported 24NewsHD TV channel on Tuesday.  

Quoting its sources, the TV channel reported that imposition of additional tax had been proposed on those travelling overseas.

Similarly, recommendation had also been made in the budget, sources added, to levy additional tax on those going to Saudi Arabia to perform Hajj or Umrah. However, there was a suggestion to exempt those going for Hajj or Umrah once in five years from the tax payment, they explained. 

There was also a proposal to levy five per cent income tax on the tax filers travelling abroad, they disclosed. 

Likewise, suggestion had been made to impose 20 per cent income tax on non-filers going overseas,” sources elaborated. 

Furthermore, they revealed, recommendation had been made in the budget to levy five per cent withholding tax on the expenditures incurred on hoteling and under different other heads during the stay of taxpayers abroad, while the imposition of 20 per cent withholding tax had been proposed on the non-filers travelling overseas.   

Sources told the channel that there was also a proposal to authorize travel agents to deduct withholding tax besides empowering the Federal Board of Revenue (FBR) officials to check tax receipts at airports.                

Reporter: Waqas Azeem