by Recently, social media was abuzz with rumors that the Federal Board of Revenue (FBR) had introduced a tax on everyday cash withdrawals—even suggesting the rate had jumped to as high as 20.5%. However, FBR has firmly denied these claims in an official statement, clarifying that:
- No new tax has been enacted on ordinary cash withdrawals.
- The existing advance tax under Section 231AB remains unaltered:
• 0.6% withholding tax on daily withdrawals over PKR 50,000 for non-filers.
• No tax for those listed on the Active Taxpayer List ATL.
🧾 Understanding the Real Tax Framework
- Section 231AB (Finance Act 2023)
- Applies to non-filers only.
- Triggers at Rs 50,000 per day aggregate cash withdrawals.
- Banks deduct a 0.6% advance tax on the entire withdrawal amount.
- ATL Status Matters
- Named on ATL? You pay no tax on withdrawals.
- Not on ATL? You face the withholding tax above.
- Recent Clarification
- FBR’s statement affirms: no modifications, hikes, or new levies—the tax regime remains exactly as per the 2023 law.
🔍 Why This Matters
- Peace of Mind for Account Holders
You won’t face surprise taxes on everyday transactions—withdraw normally without stepping over Rs 50k/day or worry about flawed info. - Transparency in Compliance
Non-filers still pay the known 0.6%, but filers continue to remain exempt—no changes sneak into the system unnoticed. - Hold Social Buzz in Check
With financial chatter going viral, it’s reassuring to see FBR stamping out misinformation with official clarity.
📌 What You Should Do
- Check Your ATL Status: If you file returns regularly, ensure your name is on the ATL to avoid withholding taxes.
- Stay Updated: Always look out for official FBR notifications—especially around budget season—to keep ahead of any genuine changes.
- Be Cautious of Rumors: Verify claims via official FBR statements before sharing or reacting.
✅ Bottom Line
There is absolutely no new tax on cash withdrawals in Pakistan. The only withholding tax—0.6% for non-filers withdrawing above Rs 50k/day—is longstanding and unchanged. FBR’s official statement puts any speculation to rest.
