ISLAMABAD – The Federal Board of Revenue (FBR) has increased advance tax on cash withdrawals to 0.6 percent for non-filers to bring expand its tax net.
The top tax authority has issued a circular in this regard, stating that non-filers will pay Rs303 in wake of tax for a bank withdrawal of Rs50,500. Those withdrawing between Rs55,000-Rs75,000 will be charnged Rs450.
The FBR said the government agencies and foreign diplomats will be exempted from these taxes on cash withdrawals.
Furthermore, it has increased withholding tax on foreign transactions through credit/debit card to maintain foreign exchange reserves.
The circular states that the “withholding tax rates have been increased from 1% to 5% for ATL persons and from 2% to 10% for non-ATL persons.”
