Cash withdrawals from banks: FBR proposes raise in WHT for non-filers
ISLAMABAD: The Federal Board of Revenue (FBR) has proposed to raise withholding tax on cash withdrawal from the banks by non-filers from 0.6 percent to 1.2 percent to generate additional revenue during 2025-26. Sources told Business Recorder that the proposal is part of the government's policy to penalise non-filers of income tax returns.
However, the government is also trying to impose financial restrictions on non-filers of income tax returns from July 1, 2025. Under the proposal, the government will abolish the category of non-filers and 'ineligible persons' would not be able to carryout any kind of financial transactions.
The National Assembly Standing Committee on Finance and Revenue, had adopted the report on Tax Laws (Amendment) Bill, 2024 to impose restriction on economic transactions of non-filers through Finance Bill 2025-26 from next fiscal year. From July 1, 2025, the government will impose strict restriction on economic transactions of non-filers through the next Finance Bill.
FBR will now share income tax returns data with banks
Sources said that the government may not abolish all withholding taxes for non-filers in one go due to revenue implications. Therefore, the doubling of withholding tax rates on cash withdrawal from the banks by non-filers is also under consideration. Presently, over Rs 50,000 cash withdrawals by non-filers, in a single day, through credit cards/ATMs is also be subjected to 0.6 percent withholding tax.
The Finance Act 2023 had reintroduced tax collection on cash withdrawals from Non-ATL persons by banks. The section 231AB requires every banking company to deduct advance adjustable tax at 0.6 percent from a person whose name is not appearing in the Active Taxpayer List, at the time of making payment for sum total of cash withdrawal (aggregate cash withdrawal) in a single day exceeding Rs 50,000. Cash withdrawals made on credit cards or from ATMs were also be covered by this provision.
If the aggregate of cash amount withdrawn in a single day exceeds Rs 50,000, the tax is required to be deducted on the entire amount of cash withdrawn.
Copyright Business Recorder, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
4 hours ago
- Express Tribune
FBR clarifies concerns over tax law amendments
As the Finance Bill 2025 undergoes debate in the National Assembly and within business circles, concerns have emerged regarding certain proposed amendments to tax laws. Several reports in the digital and print media suggest a lack of clarity and public understanding surrounding some key provisions. A particular point of contention involves the proposed changes to arrest powers under tax fraud investigations. Currently, Section 37A of the Sales Tax Act, 1990 provides legal grounds for arrest in such cases, along with safeguards, such as immediate intimation to a Special Judge and mandatory court appearance within 24 hours. The proposed amendment, however, introduces stricter procedural checks. It requires a prior inquiry and written approval from the Commissioner Inland Revenue (CIR) before any investigation is initiated. Only after the CIR's authorisation can an investigation officer — vested with the powers of an officer in charge under the Code of Criminal Procedure, 1898 — proceed with an arrest. Even then, the officer must have reasonable grounds to believe that tax fraud has occurred. If an arrest is found to be mala fide, the case will be referred to the Chief Commissioner for a fact-finding inquiry. These new provisions mark a shift from the previous framework, where an Assistant CIR could authorise arrests. The amendments are being positioned as a move towards greater transparency and procedural fairness. In a recent press statement, the Federal Board of Revenue (FBR) has maintained that these measures aim to strike a balance — reassuring compliant taxpayers while ensuring that tax evaders face strict legal consequences.
Business Recorder
5 hours ago
- Business Recorder
Punjab's budget and Maryam Nawaz's priorities
For a long time, budgets were seen as mere formality — voluminous documents weighing 15 to 20 kilograms, often relegated to scrap piles. However, Maryam Nawaz has shattered this perception. For the first time in Punjab's history, the budget reflects not only numbers but real, tangible priorities for the public good. In the fiscal year 2025–26, the Punjab government under Maryam Nawaz has made historic increases in allocations across key sectors. Education has received a 127 percent increase in funding, health 41 percent, agriculture 25 percent, local government 130 percent, law and order 131 percent, and transport an astonishing 359 percent. Moreover, the development budget has reached a historic level with an allocation of Rs 1,240 billion. What sets this apart is not just the allocation on paper but real action on the ground. Over 700 kilometres of roads are currently under construction across the province. Beyond Lahore's development plan, projects in other districts have also been approved. In just her first year in office, Maryam Nawaz's government initiated nearly 100 public welfare projects — all funded through provincial resources, without relying on federal contributions. In healthcare, her government has introduced free medicines in public hospitals for the first time in Punjab. An impressive Rs 80 billion has been allocated solely for this purpose. Additionally, a Universal Health Insurance Programme is being launched with a budget of Rs 25 billion to ensure affordable and quality medical care for all citizens. The flagship project in health remains the Nawaz Sharif Cancer Hospital in Lahore, which is rapidly progressing and expected to complete its first phase by 2025. Work is also under way on the Nawaz Sharif Cardiology Hospital in Sargodha, due to be completed by September this year. In the realm of youth engagement and sports, the budget includes new schemes worth Rs 7.6 billion to build modern sports complexes in various cities. This is part of a broader strategy to provide healthy outlets and keep young people away from divisive and confrontational politics. The 'Easy Business Programme' has disbursed Rs 70 billion in interest-free loans to youth and entrepreneurs, leading to the establishment of over 5,000 new businesses. Education remains a top priority. The development budget for education has more than doubled — seeing over a 200 percent increase. Not only has this sector received funding, but major initiatives have been rolled out in schools and colleges, including infrastructure improvements and better resources. Public hospitals are undergoing a successful revamping initiative. Many now match or even surpass private hospitals in quality, offering free diagnostics and medication — services previously unheard of in public facilities. Unfortunately, opposition parties often reduce their role to theatrics — tearing up budget documents and causing disruptions in the assembly, acts that serve no benefit to the common citizen. Constructive criticism and viable suggestions are essential for a functioning democracy. Disagreements are natural in politics, but personal attacks cross into hostility. Despite being numerically strong, the opposition remains fragmented and divided, inadvertently benefiting the ruling party. The government's focus, meanwhile, is steadfast on Punjab's 140 million residents. Development projects are being executed across the province — from Lahore to Attock and Rawalpindi to Sadiqabad — without discrimination. Maryam Nawaz's first year in office has addressed many injustices from the past. There is a visible shift in public perception — people are beginning to express satisfaction with the government's direction. A key factor in her success is the guidance and political wisdom of Nawaz Sharif, a seasoned and visionary leader. His focus on public welfare has clearly influenced her governance model. Maryam Nawaz's strength lies in her ability to initiate people-centric projects that deliver real benefits. Today, Punjab leads other provinces in development and prosperity, primarily because public funds are being spent on the public itself. When citizens experience relief, they naturally see their leaders as their true well-wishers. She has also played a vital role in strengthening the PML-N in Punjab. The recent by-election victory in Sambrial stands as a testament to that. Attempts to spread division and hatred in the province have been decisively countered through effective political strategy. People are increasingly rejecting politics of violence and destruction, recognizing its detrimental impact. Maryam Nawaz and her team are working diligently to improve the quality of life for the citizens of Punjab. Her cabinet includes two dynamic female ministers — Marriyum Aurangzeb and Azma Bukhari — who have made significant contributions. Maryam Nawaz frequently acknowledges and praises their efforts. Azma Bukhari, in particular, has proven herself a formidable spokesperson, not only promoting government initiatives but also effectively countering the opposition. With a cabinet full of young, educated, and dedicated professionals, Maryam Nawaz's government is working with commitment. The results of these efforts are becoming increasingly visible across the province, as Punjab strides confidently on the path of development and progress. (The writer is the PRO of information minister Punjab) Copyright Business Recorder, 2025
Business Recorder
5 hours ago
- Business Recorder
Streetlight meters: Punjab seeks functionality verification survey
ISLAMABAD: The government of Punjab has requested a comprehensive survey to verify the functionality of existing streetlight meters and to ensure the installation of separate energy meters for all unmetered streetlight connections maintained by local governments. The province has also called for a special electricity tariff for streetlights, citing inflated billing practices by distribution companies (Discos). According to the Secretary for Local Governments, Punjab, there are currently 229 Local Governments providing municipal services across the province. Under Section 21(1)(s)(iii) of the Punjab Local Government Act, 2022, the responsibility for the installation and maintenance of street lighting lies with these Local Governments. Despite facing limited financial resources, Local Governments have been striving to maintain street lighting infrastructure. However, the rising cost of electricity—exacerbated by inflated bills—has made it increasingly difficult to sustain these essential services. A major contributing factor to these high bills is the prevalence of unmetered streetlight connections. Currently, Punjab has a total of 177,495 streetlights, of which 99,288 are metered while 78,207 remain unmetered. Due to the lack of proper metering, Discos often bill Local Governments based on average consumption or lump-sum estimates. This results in payments for electricity that is not actually consumed, placing a heavy financial burden on already stretched municipal budgets. Audit reports from the Municipal Corporations of Rawalpindi and Sialkot, presented before the Public Accounts Committee-III (PAC-III) of the Punjab Assembly, flagged significant overpayments. The audit cited unjustified payments of Rs. 69.048 million in Rawalpindi and Rs. 70.667 million in Sialkot for streetlight electricity bills. After reviewing the audit findings and the responses of the concerned departments, PAC-III issued the following directive to the Local Government and Community Development Department: 'The Committee directed the Administrative Department to prepare a comprehensive reference for submission to the Federal Government, emphasizing the rationalization of electricity tariffs, installation of separate meters, and exploration of alternate solutions.' In a letter addressed to the Secretary of the Power Division, the Secretary for Local Governments, Punjab, requested that in light of the PAC directions, necessary instructions be issued to all relevant Discos in Punjab to: (i) conduct a comprehensive survey to verify the functionality of all already-installed streetlight meters and ;(ii) expedite the installation of separate energy meters for all unmetered streetlight connections maintained by Local Governments. The letter also urges to take up the matter with the National Electric Power Regulatory Authority (Nepra) to introduce a special electricity tariff for streetlights, given that these services constitute a vital public utility. Copyright Business Recorder, 2025
