ISLAMABAD - The Senate Standing Committee on Finance and Revenue on Monday has recommended the government to apply 0.4 percent withholding tax on cash withdrawal exceeding Rs100, 000 per day instead of Rs 50,000 per day.

The government has reduced the withholding tax on non-cash banking transactions for non-filers to 0.4 percent down from 0.6pc on cash withdrawal of Rs50, 000 per day. However, the parliamentary committee has asked the government to tax the cash withdrawal exceeding Rs100, 000 per day. The committee, which met under the chair of Senator Farooq H Naik has finalised the budget recommendations of the Senate.

The committee has recommended to bar the non-filers from purchasing commercial property that has a declared value of over Rs4 million.

Earlier, the government in budget has proposed that to bar non-filers from purchasing property that has a declared value of over Rs4 million. The committee has also recommended that non-filers should be disallowed to purchase new motor vehicles manufactured in Pakistan or new imported vehicles of more than 1000cc. The committee was informed that government has restricted the powers of Federal Board of Revenue of taking information from the bank accounts of the people in Finance Bill 2018.

The committee recommended including foreign auditors in audit process of the taxpayers. The committee has also suggested increasing the penalty and fine on the wealthy non-taxpayers for tax evasion. It has also recommended that to impose 2 percent penalty on those who hide their foreign assets and income. The Senate Standing Committee on Finance and Revenue has proposed to give 10 years income tax exemption on oil refinery that produces 1,00,000 barrel oil every day from July 2018 to June 30 2023.

The committee has rejected the proposal to tax the foreign companies who invested in Pakistan. It has also approved the government proposal to enhance taxes on marriage halls.

In order to improve and streamline the collection of this tax, marriage halls are now required to collect either 5 percent of the bill or Rs.20,000/- per function in major cities and Rs.10,000/- per function in the remaining cities , whichever is higher.

The committee has also approved the FBR's proposal that donations paid to Pakistan Sweet Home, Angels and Fairies Place, Al-Shifa Trust Eye Hospital, Aziz Tabba Foundation, Sindh Institute of Urology and Transplantation, Kidney Centre Post Graduate Institute, Shaukat Khanum Memorial Trust, Third Pakistan International Sukuk Company Limited, SAARC Energy Centre, Pakistan Bar Council, Pakistan Centre for Philanthropy, Limited, Saylani Welfare International Trust, Forman Christian College, and Pakistan Disabled Foundation will be exempted from income tax.