PM Shehbaz Rejects Increase in Withholding Tax on Cash Withdrawal in New Budget

Prime Minister Shehbaz Sharif has rejected all major budget proposals of the Federal Board of Revenue (FBR) having a direct inflationary impact on the general masses including increasing the withholding tax rate from 0.6 to 0.9 percent on cash withdrawals from banks by non-filers.

Four proposals of the FBR have been rejected by the Prime Minister.

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These four revenue measures have an accumulative revenue impact of Rs. 150-200 billion:

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The increase in the WHT rate has been estimated to generate additional revenue of Rs. 20 billion in 2024-25.
The taxation of pensions was also turned down by the prime minister.
The prime minister has also rejected a raise in the standard rate of sales tax from 18 to 19 percent having a revenue impact of Rs. 40-50 billion.
The Prime Minister has rejected an 18 percent sales tax on petroleum products with an impact of Rs. 30-40 billion.