ISLAMABAD – Pakistani government enforced higher taxes on bank transactions, hitting non-filers with steeper deductions, while banks have simultaneously hiked their own fees, sparking widespread concern and disputes.
After latest changes, non-filers now face 0.8pc withholding tax on bank withdrawals, while banks also increased ATM card charges, SMS alert fees, and charges for using other banks’ ATMs, often without any difference between filers and non-filers. State Bank, however, clarified that these hikes were implemented by 1Link, the interbank network.
Lates fee for using another bank’s ATM surged, while a Rs. 50,000 withdrawal could now cost Rs. 80 in charges. ATM card fees have jumped by Rs. 700, and SMS alert service fees skyrocketed from Rs. 1,200 to Rs. 2,000. Cash withdrawals via cheque counters are now also taxed, with non-filers paying Rs. 522 for Rs. 20,000 withdrawals.
Banks have also set strict withdrawal limits like standard debit card holders can withdraw Rs. 25,000 to Rs. 50,000 daily, premium card holders up to Rs. 500,000 daily, and foreign debit card holders can withdraw $200–$500 daily. Exceeding Rs. 50,000 in a day triggers automatic tax deductions.
International ATM withdrawals will incur either percentage-based fees or fixed bank charges, depending on the bank’s policy.
The combined effect of rising taxes and bank fees has fueled disputes between customers and bank staff, prompting banks to approach 1Link for a review of the scheduled charges. Officials warn that these high charges could impact banking transactions and inadvertently promote a cash-based economy.
Withdrawing Cash from other Bank’s ATM to cost Rs35 per transaction in Pakistan
