Pakistan mulls more taxes on cash withdrawals by non-filers in FY25 Budget

ISLAMABAD – Pakistani government is tightening noose around tax evaders and the latest consideration is to impose additional taxes on cash withdrawals.

Reports in local media suggest that federal government is working to jack up the advance tax on cash withdrawals by non-filers from banks in the upcoming fiscal year budget.

It said Pakistani officials discussed the proposal with IMF team during ongoing negotiations for another programme. 

The country’s apex tax collection agency, Federal Board of Revenue (FBR), came up with notion to raise advance tax from 0.6 percent to around 1 percent for non-filers.

This tax was introduced at 0.6 percent last year, and after approves from legislature, the FBR could generate over Rs. 15 billion in annual revenue from non-filers.

In a similar development, the government proposed increasing withholding tax for vehicles with engine capacities of 850cc or more, which could lead to higher vehicle prices and increased tax collection from auto consumers.

To increase revenue, the government is expected to slap higher taxes on sale and purchase of property plots worth Rs5 crores or more. 

https://en.dailypakistan.com.pk/13-May-2024/how-much-tax-non-filers-will-pay-on-rs100-mobile-balance-details-inside