withholding tax

The Philippines plans to revise local-currency bond pricing by eliminating withholding tax, a move that could result in losses for existing investors in the country's $230 billion bond market.

The Federal Board of Revenue (FBR) has proposed a voluntary tax regime for small shopkeepers with annual turnover up to Rs200 million, offering a 1% gross turnover tax rate and exemptions from audits, withholding tax, and digital invoicing. The scheme excludes retailers with prior high turnover, multiple shops, or specific professions like doctors and lawyers.

The Pakistani government's Finance Bill FY27 introduces steeper penalties for tax compliance violations, including late filing of income tax returns, restoration to the active taxpayers list, and deficiencies in documentation. Penalties for businesses and individuals have increased significantly, with some fines more than doubling or rising fivefold, aimed at strengthening tax compliance and revenue mobilization.

The government announced FY26-27 budget measures including 7% salary and pension increases, a 10% federal minimum wage hike, expanded social welfare programs, and tax reductions for multiple income brackets. Relief includes lower tax rates for high earners, abolition of certain surcharges, and sector-specific concessions for real estate, IT, and exports.