Islamabad June 9 2023: Pakistan to re-imposed tax on cash withdrawals made by non-filers to encourage tax filing, according to proposed Finance Bill 2023-24.
Ministry of Finance proposed re-imposition of 0.6% advance adjustable withholding tax on non-ATL persons on cash withdrawal.
“Every banking company shall deduct advance adjustable tax at the rate of 0.6% of the cash withdrawal from a person whose name is not appearing in the active taxpayers’ list on the sum total of the payments for cash withdrawal in a day, exceeding fifty thousand rupees” states finance bill.
For removal of doubt, FBR has clarified that the said fifty thousand rupees shall be aggregate cash withdrawals in a single day.
