Budget 2025 Pakistan: Non-Filers to Pay Rs1,200 Tax on Rs100,000 Withdrawals


Non-filers may pay Rs1,200 tax on every Rs100,000 cash withdrawal under Budget 2025 Pakistan, as the government tightens financial rules to boost tax compliance.

Budget 2025 Pakistan proposes a 1.2% withholding tax on cash withdrawals by non-filers.

This means withdrawing Rs100,000 will cost an extra Rs1,200 in tax. Earlier, the rate was 0.6%, but the government plans to double it.

Some reports suggest a possible 0.8% rate after committee review.  Banks will deduct the tax automatically on withdrawals above a set limit.

Updated Limits and Thresholds

Authorities may increase the tax-free withdrawal limit to Rs75,000. Withdrawals below this threshold could remain exempt. The new tax will apply on the excess or total amount, depending on the final rule.

Why the Government Is Doing This

The main goal is to expand the tax base and reduce undocumented cash transactions. This helps fight money laundering and encourages people to become active filers. By promoting digital payments, the government aims to strengthen financial transparency.

For official details and updates, visit the Federal Board of Revenue (FBR) website.

Other Restrictions on Non-Filers

Under the proposed plan, non-filers may:

  • Lose access to open new bank accounts.
  • Be barred from buying property or vehicles.
  • Face limits on investments in securities and mutual funds.

These steps are meant to push non-filers toward registration and ensure accountability.

Key Figures at a Glance

Metric / ProposalValue / Change
Proposed WHT on withdrawals (non-filers)1.2%
Previous rate0.6%
Committee revision (possible)0.8%
Exemption thresholdRs75,000
Added restrictionsNo new bank account, property, or investments
Expected revenue gainTens of billions of rupees

Impact on the Public

Non-Filers:

  • Will pay Rs1,200 tax per Rs100,000 withdrawal.
  • Could lose access to financial services.
  • Should register as filers to avoid penalties.

Filers:

  • Remain exempt or taxed at much lower rates.
  • Enjoy easy access to property, investments, and banking.

Conclusion

Budget 2025 Pakistan is tough on non-filers.  If the proposal passes, withdrawing Rs100,000 in cash could cost Rs1,200 in tax.  To avoid this burden, it’s time to register, file taxes, and join the formal economy.

Check out Waystax for complete tax filing and registration support in Pakistan.