Budget 2023-24: Pakistan imposes 0.6% tax on bank transactions above Rs50,000

ISLAMABAD – The federal government has imposed 0.6 percent tax on each bank transaction of above Rs50,000 for non-filers as it has decided to increase the tax collection targets.

The government has decided to raise the tax collection target to Rs9,200 billion for the next fiscal year 2023-23, which was unveiled today (Friday) in the National Assembly. The PDM-led coalition has also decided to set the non-tax revenue target as Rs2,800 billion. 

The government has proposed to raise Withholding Tax for filers from 1 percent to 5 percent while 10 percent for non-filers. A proposal of imposing Super Tax on the rich has also been made in this budget. 

It is expected that the government would imposes new taxes worth Rs200 billion in the budget to achieve the tax collection target. 

It is expected that over 30% tax will be imposed non-filers for mutual funds and real investment trust. The government would also increase withholding tax (WHT) on luxury items while WHT will be doubled for non-filers in property sector. 

According to the proposed finance bills, the WHT will also be increased for non-filers involved in buying and selling of prize bonds.