The Senate Standing Committee on Finance on Wednesday approved a proposal to raise the withholding tax on cash withdrawals by non-filers to 1 percent next fiscal year after the Chairman Federal Board of Revenue (FBR) Rashid Mahmood Langrial recommended the move.
This is higher than the earlier proposed rate of 0.8 percent and the existing 0.6 percent rate.
Last year, over Rs. 50,000 in cash withdrawals by non-filers, in a single day, through credit cards/ATMs were also subject to a 0.6 percent tax. Cash withdrawals made on credit cards or from ATMs were also covered under this provision.