The Federal Board of Revenue has proposed to increase the withholding tax rate on non-filers on cash withdrawals from banks from 0.6 percent to 1.2 percent in the new budget.
Sources have been quoted as saying that the government’s move aims to make financial activities difficult for those who do not file tax returns, so that they too come under the tax net. The government is considering abolishing the category of non-filers from July 1, 202,5, and they will not be able to carry out any financial transactions.
In this regard, the Standing Committee on Finance and Revenue of the National Assembly has approved the report of the “Tax Laws (Amendment) Bill 2024”, under which strict restrictions will be imposed on the economic activities of non-filers, and all these measures will be implemented through the upcoming Finance Bill 2025-26.
Currently, non-filers are charged a tax of 0.6% if they withdraw more than Rs 50,000 in a day, and it is now being proposed to double this rate to 1.2%.
