3.5% Withholding Tax Exemption on Agriculture produce and other categories – Alfalah Securities Limited

Karachi: The Federal Government has exempted agriculture producers from payment of 3.5% withholding tax on proceeds received through supply of agricultural products if they provide an exemption certificate to the withholding tax agents.

According to Alfalah Securities, moreover, the Federal Government has exempted 3.5% withholding tax on oil tankers against cash payments being made on account of incidental expenses of a business trip to oil tankers while, steel melters would also be liable to a reduced rate of 1% withholding tax on account of local purchases of steel scrap. The exemptions being granted on supply of agriculture produce and oil tankers would result in a relief to these businesses and would enable them to become cost competitive.