ISLAMABAD, June 18: The Senate Standing Committee on Finance has approved a proposal to increase the withholding tax on cash withdrawals by non-filers to 1 percent for the next fiscal year. This decision came after Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial recommended the increase.
Currently, non-filers face a 0.6 percent tax on cash withdrawals over Rs. 50,000 made in a single day, which also applies to credit card and ATM withdrawals. The approved change will raise this tax rate to 1 percent, aiming to broaden the tax net and encourage more individuals to become active taxpayers.
This move is part of the government’s broader strategy to enhance tax collection and formalize the economy. By increasing the cost of large cash transactions for non-filers, authorities hope to incentivize compliance with tax regulations.
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