Govt to Raise Tax on Cash Withdrawals in Upcoming Budget
Getting your Trinity Audio player ready...

The proposal to raise the tax on cash withdrawals has been a topic of discussion in recent talks between Pakistani officials and the International Monetary Fund (IMF) team.

Currently, according to sources, a 0.6% advance tax is imposed on cash withdrawals over Rs50,000 by non-filers from banks.

Read Also: Pakistan Stock Exchange (PSX) Achieved A New Record High Surpasses 74,500

However, the Federal Board of Revenue (FBR) is now suggesting an increase in this tax rate from 0.6% to 0.9% for cash withdrawals by non-filers.

Sources indicate that this advance tax on cash withdrawals is expected to generate more than Rs15 billion annually.

Moreover, there is a potential plan to hike taxes on income from non-essential and luxury goods in the forthcoming budget.

The FBR might intensify measures against non-filers.

A carbon tax is also being considered for the upcoming budget as experts deliberate on its implications.

In the next budget, further tax hikes on imported vehicles with engine capacities above 1300cc are likely.

Additionally, a proposal has been put forward to increase the withholding tax on all new vehicles with engine capacities above 850cc.

Sources also disclosed that the government is contemplating additional taxes on property transactions valued at fifty million rupees or more.

By Author

Leave a Reply

Your email address will not be published. Required fields are marked *