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The Federal Board of Revenue has abolished withholding tax on bank transactions, purchase of used cars, domestic and international air travel, CNG and minerals, it said Friday.

The tax has been abolished under the Finance Act 2021, the FBR said in a notification.

People buying new cars will be required to register the vehicles in their own names. They will have to pay Rs200,000 for failing to do so.

There will be no withholding tax on sending money abroad through credit or debit cards either, according to the FBR.

A 75-paisa Federal Excise Duty will be charged on phone calls exceeding five minutes.

The FBR requires businesspersons to have Business Accounts to ensure documentation of the economy. Taxpayers will have to declare their Business Accounts.

Hiding the taxable income can now result in the arrest of an individual, according to the notification. The FBR will identify tax evasion through a third party.

Forms to file tax returns for FY2021 are available on the FBR website and the Tax Asaan mobile app. The deadline to pay all taxes is September 30.

The amendments have been made to the 2001 Income Tax Ordinance as well.

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