ISLAMABAD – Bad News for Non-Filers as the government continues to tighten noose around those evading taxes and now they need to pay one percent tax on cash withdrawals exceeding Rs75,000.
This move aims to end cash transactions and widen country’s tax base. Under the new rules, any withdrawal above Rs75,000 from bank accounts of non-filers will attract a 1 percent tax on the entire withdrawn amount.
Cash withdrawal charges for non-filers
| Amount | Tax Rate | Tax Payable |
| 76,000 | 1% | 760 |
| 100,000 | 1% | 1,000 |
| 500,000 | 1% | 5,000 |
This tax applies alongside an increased withholding tax rate of 0.8% on such transactions, further tightening financial scrutiny on individuals not registered with the tax authorities.
Officials say this measure is intended to encourage tax registration and transparency in cash movements, which have traditionally been a major avenue for tax evasion.
| Area | Details |
| Withholding Tax on Withdrawals | Increased to 0.8% |
| Withholding Tax on COD & E-Commerce | 5% withholding tax imposed |
| Penalty for Courier Non-Compliance | Rs50,000 fine for failing to submit statements for three consecutive months |
Banks will also be required to report these transactions regularly to the Federal Board of Revenue (FBR), enabling stricter monitoring and enforcement.
Finance Bill 2025 is expected to be finalized in the National Assembly next week.
Pakistani government reduced income tax rate to 1pc for individuals earning up to Rs12lac annually, down from 5pc, to ease financial burden on salaried workers.
Other tax cuts include lowering rates to 11% for earners up to Rs2.2 million and 23% for those earning between Rs2.2 million and Rs3.2 million.
Professionals earning over Rs1 million will also receive a 1% surcharge exemption. The budget for FY2025–26 focuses on welfare, with a modest 1.9% increase in federal spending.
Pakistan cuts Income Tax from 5% to 1% for Salaried Class earning up to Rs12lac a year
