The Federal Board of Revenue (FBR) has officially implemented a tax increase on cash withdrawals from banks for non-filers. This change, introduced in the federal budget, is aimed at encouraging people to join the Active Taxpayers List (ATL) and comply with tax laws.
New Tax Rate for Non-Filers
Under the new rule, if a non-filer withdraws more than Rs 50,000 in a single day, a 0.8% tax will be deducted. Previously, the tax rate was 0.6% for the same amount. This higher deduction is expected to motivate more people to file their tax returns and avoid extra charges.
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Authority of Banks
Every banking company in Pakistan is now authorised to deduct this advance adjustable tax from the account of any person who is not on the ATL. This means the deduction will happen automatically at the time of withdrawal.
Changes in Property Tax
The FBR has also made adjustments to property-related taxes.
- For property buyers, the withholding tax has been reduced by 1.5% to give them financial relief.
- For property sellers or those transferring property, the tax rate in each slab has been increased by 1.5%. This increase is meant to adjust the capital gains tax earned from property sales.
Legal Amendments
These changes have been made under amendments to Section 236C and Section 236K of the Income Tax Ordinance. The government believes this step will improve tax collection and promote fair contribution from both individuals and businesses.
FAQs
1. Who is considered a non-filer in Pakistan?
A non-filer is someone who has not submitted their income tax return and is not listed in the Active Taxpayers List (ATL) maintained by the FBR.
2. What is the new tax rate for cash withdrawals?
For non-filers, withdrawing more than Rs 50,000 per day from a bank now incurs a 0.8% tax.
3. Does this tax apply to all bank withdrawals?
No. The tax only applies if the daily withdrawal amount exceeds Rs 50,000 and the account holder is a non-filer.
4. Why did the government increase the tax?
The main goal is to encourage more people to file their tax returns and join the ATL, thus increasing the country’s tax base.
5. What changes have been made to property taxes?
The buyer’s tax rate has been reduced by 1.5%, while the seller’s tax rate has been increased by 1.5% to adjust capital gains.
