Business

Budget 2024-25: Govt to ‘increase’ tax on cash withdrawal

Published by
Staff Reporter

ISLAMABAD: The federal government is mulling over increasing an advance tax on cash withdrawal by non-filers from banks in the upcoming FY budget 2024-25.

According to sources, FBR proposed to increase the advance tax on cash withdrawals from 0.6 percent to 0.9 percent for non-filers in next year’s budget.

The government had first imposed a 0.6 percent advance tax on non-filers in the FY2023-24 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 on all sorts of vehicles, having engine capacity of 850cc or more.

Moreover, the govt has also decided to launch a crackdown against individuals who did not register themselves for the Tajir Dost Scheme. The FBR has proposed to send notices to them.

The Tajir Dost Scheme is a voluntary tax compliance scheme designed to simplify tax filing for small businesses.

Expected Tax Rate on Cash Withdrawals

If the proposal is approved, the banks will deduct Rs900 on a cash withdrawal of Rs100,000. The revised tax rate would come into effect from July 1, 2024.

Staff Reporter

Recent Posts

Decision to pay salaries and pensions to government employees ahead of time

KARACHI: A big good news has come out for government employees of Sindh. It has…

5 minutes ago

Big increase in prices of chicken and eggs, government price list ignored

ISLAMABAD: The prices of chicken and eggs have skyrocketed. The government price of chicken meat…

44 minutes ago

Transportation in the Strait of Hormuz restored, oil prices drop further

TEHRAN: After the restoration of maritime transportation in the Strait of Hormuz, crude oil prices…

53 minutes ago

Iranian rial value suddenly skyrockets, citizens flock to currency exchange centers

ISLAMABAD: Pakistan’s open currency market is witnessing an unusuawith demand for the Iranian rial rising…

1 hour ago

Meteorological Department issues important rain forecast

LAHORE: An important forecast of the Meteorological Department regarding the weather in Lahore has come…

2 hours ago

How much tax will be deducted from salary from July 1? New slabs introduced

ISLAMABAD: The federal government has introduced new income tax slabs for government employees and salaried…

2 hours ago