ISLAMABAD – Pakistani government officially denied reports suggesting all types of bank transactions are now being taxed for both filers and non-filers.
Under new rules, non-filers will be subject to withholding tax (WHT) of 0.8pc on cash withdrawals exceeding Rs50,000 per day from July 1, 2025.
Amid growing confusion and misinformation circulating online, government officials stressed that the revised policy does not apply to tax filers, nor does it cover transactions such as online transfers, cheque payments, or deposits.
Under new regime, individuals listed on Active Taxpayers List (ATL) commonly referred to as filers will not be charged any WHT on large cash withdrawals, regardless of whether the transaction is made through a bank counter or ATM.
Meanwhile, non-filers those who have not submitted their tax returns will now be taxed at a rate of 0.8%, up from the previous 0.6%, on daily cash withdrawals over Rs. 50,000. These deductions are processed automatically by banks and apply strictly to cash withdrawals exceeding the set threshold.
Officials stressed that withholding tax is designed to promote tax compliance and encourage individuals to file their returns. The aim is to broaden the tax base without burdening existing taxpayers with unnecessary levies on routine banking activities.
“The rumors about taxes on all types of bank transactions are completely false,” said a senior official from the Federal Board of Revenue (FBR). “There is no tax on digital transfers, deposits, or cheque-based transactions. Only non-filers making large cash withdrawals will be affected.”
This clarification comes as part of the government’s broader efforts to combat misinformation and ensure the public is accurately informed about tax reforms.
