ISLAMABAD (Kashmir English): The Federl Board of Revenue (FBR) has proposed the government to raise Withholding Tax (WHT) for non-filers’ bank withdrawals from 0.6% to 1.2%.
The increase in withholding tax is in addition to new financial restrictions on non-filers likely to be imposed from July 1.
The move is aimed to raise additional revenue for the fiscal year 2025-26, according to a news report.
As per the FBR proposal, the withholding tax on cash withdrawals exceeding Rs 50,000 in a single day will be doubled to 1.2% for non-filers.
This includes cash withdrawals made through ATMs or credit cards.
Non-filers to face new restrictions
The proposed financial restrictions on non-filers are part of the government’s broader strategy to penalise individuals who fail to file their income tax returns.
Under the proposal, the government will abolish the category of non-filers and “ineligible persons” would not be able to carry out any financial transactions.
The National Assembly Standing Committee on Finance and Revenue, has already adopted the report on Tax Laws (Amendment) Bill, 2024 to impose restriction on economic transactions of non-filers through Finance Bill 2025-26 from next fiscal year.
From July 1, this year, the government will impose strict restriction on economic transactions of non-filers through the next Finance Bill.
