FBR increases non-filers’ cash withdrawal limit for withholding tax to Rs75,000

The government has decided to raise the threshold for charging a higher withholding tax on bank cash withdrawals by non-filers, as part of broader fiscal reforms under the Finance Bill 2025-26. 

The Federal Board of Revenue (FBR) has informed lawmakers that the limit for applying the enhanced withholding tax rate will be increased from Rs 50,000 to Rs 75,000 per day.  

The rate itself will also go up from 0.6 per cent to 0.8 per cent, reversing an earlier misstatement in the budget speech that mistakenly cited the rate as one per cent. 

FBR Chairman Rashid Mahmood Langrial disclosed the changes during a meeting of the National Assembly’s Standing Committee on Finance at Parliament House. Committee Chairman Naveed Qamar had suggested increasing the threshold to Rs 100,000, but a consensus was reached at Rs 75,000. 

Langrial clarified to reporters after the meeting that the new rate was misreported in the budget address. “The proposed rate is 0.8 per cent, not one per cent as incorrectly mentioned earlier,” he said.