The government is likely to raise the financial pressure on non-filers in the upcoming fiscal year by doubling the withholding tax on bank cash withdrawals, aiming to generate an additional Rs. 15–20 billion in revenue for 2025-26, sources informed ProPakistani.
A proposal is currently under review to hike the withholding tax on cash withdrawals by non-filers from the existing 0.6 percent to 1.2 percent.
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Currently, non-filers withdrawing over Rs. 50,000 in a single day through credit cards or ATMs are subject to a 0.6 percent withholding tax.
The Finance Act 2023 had reinstated the collection of tax on cash withdrawals by individuals not listed in the Active Taxpayer List (ATL). Under Section 231AB, all banks are mandated to deduct an adjustable advance tax of 0.6 percent from non-ATL individuals on cumulative daily cash withdrawals exceeding Rs. 50,000. This provision also applies to withdrawals made via credit cards or ATMs.
