The government is considering imposing withholding tax on cash withdrawals from banks and banking instruments, and withholding tax on banking transactions other than through cash, through the promulgation of a Presidential Ordinance.
Highly-placed officials confirmed to ProPakistani that the Federal Board of Revenue (FBR) has drafted the proposal as a major revenue generation measure, but the same has not been finalized or approved by Finance Minister Ishaq Dar.
“Yes three proposals have been chalked out including restoration of section (231A); Collection of tax on cash withdrawal; section (231AA) Collection of tax on banking instruments and section (236P) collection of tax on banking transactions other than through cash. If the proposals are approved, it would be made part of the Presidential Ordinance to be promulgated”, they added.
The FBR has repeatedly claimed that many withholding tax provisions were eliminated and consequently, the percentage contribution of withholding taxes indirect taxes has also been reduced. But the proposed measure is against the policy of reducing reliance on withholding taxes.
The abolished section 231A of the Income Tax Ordinance 2001 stated: “Every banking company shall deduct tax at, if the payment for cash withdrawal, or the sum total of the payments for cash withdrawal in a day, exceeds Rs. 50,000.
The abolished section 231AA of the Income Tax Ordinance 2001 says: “Every banking company, non-banking financial institution, exchange company or any authorized dealer of foreign exchange shall collect advance tax at the time of sale against cash of any instrument, including demand drafts, pay orders, call deposit receipts, special term deposits, special drawing right, real-time clearing, or any other instrument of bearer nature or on receipt of cash on cancellation of any of these instruments.
Under section 236P of the Income Tax Ordinance 2001,
- Every banking company shall collect advance tax from a person whose name does not appear in the Active Taxpayers List on the sale of instruments, including demand drafts, pay orders, special deposit receipts, cash deposit receipts, short-term deposit receipts, call deposit receipts and rupee travelers’ cheque, where payment for sum total of all transactions exceed Rs. 50,000 in a day.
- Every banking company shall collect advance tax from a person whose name is not appearing on the active taxpayer’s list on the transfer of any sum through cheque or clearing, interbank or interbank transfers through cheque, online/telegraphic/mail transfer, where payment for sum total of all transactions exceeds Rs50,000 in a day.
The FBR has witnessed a decrease of 0.2 percent in withholding tax collection from cash withdrawals from banks during 2020-21.
According to the FBR’s year book (2020-21), the decline in WHT collection cash withdrawals from banks is the direct consequence of a higher number of income tax return filers, which reduced collection of WHT from non-filers under this head. However, there was no change in WHT tax rates during 2020-21.
This will surely lead to grey channels and increase cash transactions.
FBR naver be impose tex on elite class income and lavishly life . Fbr only tighten the common man . Even fbr knows better elite class earned billions of rupees from different sector’s and 1 single penny not deposit in shape of tex. For example. Shops keeper purchase Veet from former some of 2000 per 40 kg and now a days sell in markeet 5400 per 40 kg . And also other food items . In other side plastic raw metrial 7000 per bag 25 kg . And shop keeper’s and other stockist sell in a weak to highly side to price 16000 thousands plus . Hugely income but fbr no collection tex form their highly income . Because they belong directly in directly the elite and fbr protect them this is the real face and story .
No one in Pakistan pays tax be it the elites or the commons. It’s not only a problem with people but with lack of enforcement by government.
I think you need to review your comments..
If no one is paying tax in Pakistan then how Pakistan is running and even..
First of all see your Electric Bill then reply..
Pakistani pays tax on
Mobile loads
Making calls
Filling petrol
Airline tickets
All utility Bill’s
Internet connections
Purchase of packed food stuff.
Soft drinks
And on everything except vegetables
Dear please quite if any vegetable vendor read your comment we are facing a new problum
This proposal is absolutely without any thought. No idea what the Government is thinking. It will only result in increase of unofficial economy and purely cash transaction. This action actually is to discourage banking transaction, cash or otherwise. Maybe this is what the present government wants after all. An unofficial black economy.
Crypto currency use ho ge fir . Pakistan ma BHI common.
Bank Deposits and Banking by majority population will dwindle. Underground Cash economy will rise. Cash will disappear in banks.
FBR = Federal Board of Robbers
It’s our cash from savings or whatever, already taxed through income or sales etc, why we should pay WH tax for keeping it in bank besides banking charges etc.. Highly unfair, easy game for FBR to extract through indirect taxation and to hide their incompetency to collect revenue through direct taxes
Wah bhae bhot tyt majboor kar rahe hain ya ky Pakistan se chalay jain had yahan ki government tubha karo koi tax kha kha ky he porey ho jao gy har chez main to tax lay rahe ho
Jb nahi sambhal sakty Pakistan ko to kyun vote ky liya larty ho had hai atta daal cheeni milk sabzi kaha se kaha pouncha diya gaya hai..
Or koi check karny tak nahi ata ky kiya rate hai airport se pani ki bottle lo to expensive ya he koi bahir se goora akar lay to cheap had hai citizens ky sath aise karty ho or bahir acha dhekaty ho apne apko shame on you..
Reduce the salary perks and prevailages of MPAs, MNAs, Senators, Judges, President, Governors, Ch Minister’s
Good revenue will be generated from elites.
These thugs are going to suck the wind out of this nation.
We earned money by working like donkies all month. And then tax is deducted even before transferring to bank. And then tax is deducted on that already taxed salary upon withdrawals. 😒
What times we are living in.
It’s called mini default
My point of view is there is two ways to tackle the problem of economy. One is increase taxes in which specially already burdened middle class will be further burdened and secondly is to reduce Govt spending.
Why the later has never been done as it effects elite in the shape of free electricity, petrol, telecommunications etc free travels. In the name of security thousand of police force and police mobile are wasted. In my humble opinion all this lavish spending be curtailed. Patrol and protection shall not be provided to this class except national ceremonies.
Why people of Pakistan shall afford them who after retirement does not like to settle in Pakistan.
Why this question has not been put or raised by IMF.
First the FBR should be asked to provide statistics on the percentage of cases for which WHT is adjusted and refunded to the person. Only after FBR reaches 90% WHT refund rate should they be allowed to implement any new form of WHT. Millions of cases of refund of WHT are pending unsettled and they want impose for WHT, this is travesty of the highest order.
Kin kanjaron k hath main aa gyi hukumat. This country has become a hellhole for white collar worker.
Ok bye bye Banks, cash in hands transections welcome
East India company nay awam ka itna khoon nahi chosa ho ga Jo hall apnay he county mean ho raha ha.
The only solution is in ko ghar mei ghuss kr Maro.. ye lato k Bhoot hain baton se nahi manenge
The government of thieves along with its neutral papa will steal everything from the commoners
Choron ne chori k nit nay triky dhund liye hn
Qasam se agar jo tax hum pay karty hain wo humhx lagta howa nazar aaye, hum khushi se dein. Even k Europe USA main iss se ziyada tax lety hain. magr waha log khushi se pay karty hain. itne facilties dety hain tax payer ko.
Yarr yh sb hukram apney kharchay kam q nai krtey apna protocool khatm q nai krtey her cheiaz in logo ne IMF or awam pr daal di hue hai apney itney bewaqoof hain apney source istamal nai krtey sirf qarza leney ki khater or is qarz se apni jeabey bherney ki khater awam ko maar rahey hain
Kia pakistan me koi b aias source nai jiss ko istamal kr k hm apana nizam chala skein wo soney k zakhair maadniyaat kaha hai ….
Bs baat yh ha hukmran saley sb chore hai
Bhikaari Duniya bher se qerza le le Ker apni tijoori bher li un logo k peeche perh gae Jo apna khoon paseena aik Ker k kamaate hai.ab hum in bhikaario Ka qarza ada kere.kis bat Ka tax Kia sahoolat di hai in mulk Mai awam ko jab tak sari awam in ki trha road p akrr bheek or cheena jhapti Nahi kere gi in choor hukmurano ko Sukoon Nahi mile ga.bikao bech dia is mulk ko Allah gharat kere tum chooro ko
Common peoples like pensioners students household ladies will be affected by levying WHT on banking transactions in respect of non filers. the business community usually deals in ready cash instead of banking channels.
Haramkhor hain saalay
My jazz account number 03181343343
پیسہ عوام کا عوام پہ لگنا چائیے ہر چیز پہ ٹیکس لگا رہے ہو چور خود کتنا ٹیکس دیتے
Sirf bolny sy kuch nahe hoga Kuch krny ki Koshish kry apny mulk k liye ,mulk tabahi ki trf ja rhaa hy Hy hamry mulk ko banany walo ny is mulk ko is liye nahe banaya k awam sirf baty krty rahy or Kuch na kry ,jesi awam wesy hukamran
Bank say Trasaction Kum ho jai gee
Pakistani pays tax on everything
Mobile loads
Making calls
Filling petrol
Airline tickets
All utility Bill’s
Internet connections
Petrol
Gas
Land buy or sell
Purchase of packed food stuff.
Soft drinks and anything they buy there are direct and indirect taxes
Hy