Federal Board of Revenue (FBR), through a circular, has explained the explanation and extension of super tax for the financial year 2017-18.
According to Finance Bill for the financial year 2017-18, Super Tax is levied at the rate of 4% on the income of Banking Companies and at the rate of 3% for other persons. Super Tax was introduced in the budget for the financial year 2015-16.
However, the government has given a sigh of relief to branchless banking sector through exemption of withholding tax on cash withdrawal on branchless banking channels. Accordingly, agents could save their amount from deduction from the account maintaining in their microfinance/ commercial banks.
The exemption of withholding tax had been a long pending demand from branchless banking companies because the requirement of cash is inevitable for agents who used to suffer extra cost while paying additional tax on the withdrawals of above Rs 50,000.
