Govt to Increase Tax on Cash Withdrawals in Next Budget

The Federal Government is expected to increase the advanced tax on cash withdrawals for non-filers in the next budget for fiscal year 2024–25.

According to reports, the Federal Board of Revenue (FBR) has proposed an increase from 0.6% to 0.9% for tax on cash withdrawals by non-filers in next year’s budget.

Furthermore, the proposal has reportedly been accepted by the International Monetary Fund (IMF), which has been pressuring government to increase taxation to meet targets.

Currently, all non-filers are charged 0.6% tax on cash withdrawals above Rs. 50,000 per day. This tax was first imposed in the budget for fiscal year 2023-24.

Meanwhile, the government is also contemplating increasing taxes on everything else, including vehicles over 800 cc and property worth more than Rs. 50 million.

Read more: FBR Cracks Down on Tax Evasion with Hefty 90% Tax on Non-Filers.

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