Govt May Increase Tax on Cash Withdrawal From July 2024

The federal government is likely to increase an advance tax on cash withdrawal by non-filers from banks in the next fiscal year budget.

Sources told ProPakistani that this tax proposal has been discussed with the IMF team in recent ongoing negotiations.

FBR proposed to increase the advance tax from 0.6 percent to 0.9 percent for non-filers on cash withdrawals in next year’s budget, a proposal that the IMF has approved.

The government had first imposed a 0.6 percent advance tax on non-filers last year in the budget.

Sources said that if parliament approves this tax proposal, the FBR could collect over Rs. 15 billion annually in revenue from non-filers.

Sources also added that FBR has also proposed to increase withholding tax for all sorts of vehicles, having engine capacity of 850cc or more.

If parliament also approves this proposal, not only will vehicle prices surge next year, but the FBR will also collect more taxes from auto consumers.

Sources also said that the government is mulling, imposing more tax on the sale and purchase of property plots worth Rs. 50 million or more.

The FBR has presented these and many other proposals before the IMF, and they are waiting for approval of the IMF subsequently the proposals will be shared with PM Shahbaz Sharif for final approval.

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