FBR asked to fix minimum income limit for tax deduction from daily wagers’ salaries

LAHORE: A temporary employee of the Pakistan Broadcasting Corporation had earlier filed a complaint with the Federal Tax Ombudsman (FTO) against deduction of 17.5 percent income tax from his gross salary despite availability of basic exemption to the salaried government servants.

While responding to the FTO, the FBR had informed that the daily wagers do not fall in the category of salaried persons and they cannot be categorised as exempted employees. The tax from such employees has to be deducted.

However, in his recommendations, the FTO has now noted that regular, temporary and daily wages appointments are different forms of employment and the law does not create any distinction among them, adding that daily wagers cannot be excluded from the ambit of employment.

In his findings, the FTO held that FBR’s treatment of the instant case is against the dictates of law and excessive tax deductions from the wages of a low-paid temporary employee of PBC tantamount to maladministration.

The FTO recommended to the FBR chairman to ensure that low-paid employees of PBC and other such organisations are not burdened with excessive tax deductions at withholding stage.

He further directed the concerned RTO to process the instant case on priority basis and under relevant legal provisions, so as to save the complainant from grave hardship.

He desired that FBR should issue necessary clarification for all, so as to safeguard the low-paid employees against excessive deductions.


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