Govt to Restore Withholding Tax on Cash Withdrawals

The government is planning to restore withholding tax on cash withdrawals from the banks by the non-filers.

Sources told ProPakistani that the Federal Board of Revenue (FBR) is considering to re-impose withholding tax on cash withdrawals, banking instruments, and banking transactions by the non-filers in the upcoming budget.

The revenue impact of the proposed withholding tax on banking transactions of non-filers is nearly Rs. 45 billion.

On the other hand, the government has decided to abolish withholding taxes having less revenue impact on direct taxes collection in the coming budget (2023-24).

Sources told ProPakistani that the low yield withholding taxes may be abolished in the upcoming federal budget (2023-24).

Under the mini-budget in February 2023, the section 236CB was inserted to collect advance taxat 10 percent (withholding tax) on the total amount of the bill from a person arranging or holding a function in a marriage hall, marquee, hotel, restaurant, commercial lawn, club, etc.