The Federal Board of Revenue (FBR) has introduced new tax rules for bank transactions and property dealings. These measures are designed to increase tax collection and ensure better compliance.
New Tax on Bank Withdrawals for Non-Filers
Under the new rule, non-filers will now pay a higher tax on cash withdrawals from any bank. If a person withdraws more than Rs50,000 in a day, the tax rate is now 0.8%, up from 0.6%.
All bank branches in the country are directed to deduct this tax automatically. The goal is to push more people to register as active taxpayers.
Revised Tax Rates on Property Transactions
FBR has also changed the advance tax rates for buying and selling property. The adjustments are part of Sections 236C and 236K of the Income Tax Ordinance.
For buyers:
- Property up to Rs50 million: Tax is 1.5% (was 3%)
- Property up to Rs100 million: Tax is 2% (was 3.5%)
- Property above Rs100 million: Tax is 2.5% (was 4%)
For sellers:
- A flat increase of 1.5% in the tax rate applies
These changes are aimed at better tracking of real estate income and discouraging undocumented property transactions.
Purpose Behind the New Taxes
The FBR says the updated rates are intended to make the tax system fairer. By increasing the burden on bank withdrawals by non-filers, the authority hopes to reduce tax evasion.
The move is part of broader reforms to raise government revenue and promote transparency in financial dealings.
Tax experts suggest that these policies could encourage more people to file tax returns and conduct property deals through legal channels.
In other related news FBR Announces Extension for Sales Tax Integration Deadline
