Here’s the latest update: The Pakistani government has increased the cash withdrawal threshold for non-filers from ₨50,000 to ₨75,000 per day. Any amount withdrawn beyond this new limit will be taxed at an advance withholding rate of 0.8% (up from the current 0.6%) under the proposed Finance Bill 2025‑26 .
🔍 Key Details:
Who it applies to: Non-filers—those not on the Federal Board of Revenue's active taxpayers list .
Why the change: The aim is to reduce the tax burden on routine withdrawals while bringing more people into the formal tax system through higher penalties for excess withdrawals .
Legislative process: The National Assembly’s Standing Committee on Finance, chaired by Syed Naveed Qamar, endorsed raising the limit to ₨75,000 after rejecting a higher ceiling .
Temporary correction: The FBR clarified that the correct tax rate is 0.8%, not the 1% that was mistakenly mentioned in the initial budget speech .
📅 Timeline:
Decision made and reported: June 14–16, 2025, during the committee review
Implementation expected: As part of the Finance Bill 2025‑26, likely passed by month-end
💡 Impact & Commentary:
Relief for middle-income users: Routine cash needs now get a higher exemption, easing small transactions.
Incentive to file taxes: Higher advance tax penalizes non-filers for frequent withdrawals, nudging them to register.
Consistency with other reforms: This tweak aligns with broader efforts—like adjustments in property and digital advertising taxes—under the Finance Bill.
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