Theme/Relevant Ministry:

TAXATION
FBR; M/o Finance

Project Brief:

This research project will cover withholding taxes, its benefits and relevant costs to the economy and recommendation to make withholding taxation system more effective and efficient. It will cover different aspects of withholding taxation system like historical development of withholding taxation, taxability, role of withholding agents and FBR and payment of funds by withholding agents. The study will also cover withholding taxation system as a system of collection of income tax but while working on it we will cover all major items (contract, import, export, dividend, profit on debt, salary, telephone, electricity, technical fee, sale of goods and provision of services) which consist of more than 85% of withholding tax collection. We will also compare our withholding taxation system with systems of developed and regional countries.

In this research project we will collect data will from different reports published by FBR, finance division, research institutions and other departments regarding the withholding taxes and their collection. Then this data will be analyzed and interpreted to answer the questions of the study. 

This study is aimed at adding value by making relevant recommendations and conclusions with the intent to make withholding tax system more effective and useful.

Public Policy Relevance:

This research will cover the opinion of different stakeholders like FBR, taxpayers, tax practitioners and economists regarding the benefits of withholding taxes, its relevant cost and recommendation to make the withholding taxation system more effective and efficient. It will cover different aspects of the withholding taxation system like the historical development of withholding taxation, taxability, the role of withholding agents and FBR and payment of funds by withholding agents.