ISLAMABAD – In another step to slash the outflow of foreign currency, and to document the economy, the country’s finance czar Ishaq Dar proposed the imposition of new tax measures on cash withdrawal in Budget 2023-24.
The new tax proposal comes as the Pakistani government unveiled its annual budget with one eye on upcoming elections, and the other on dilapidating economic conditions.
Finance Minister announced the imposition of taxes on cash withdrawals as authorities planned to impose a 0.6 percent tax on cash withdrawals above Rs50,000.
The new stern measure will push people and businesses to move towards e-banking and formal banking channels.
Furthermore, the Pakistani government proposed revising the withholding tax on Debit and Credit Card transactions, the existing withholding tax has now been jacked to 5pc.
Finance authorities will discourage the excessive use of foreign currency transactions and promote the use of local currency. In a double whammy for non-filers, the tax ratio will stay at 10 percent.
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