ISLAMABAD: In a bid to widen the tax net and tackle its growing fiscal deficit, the Pakistani government is mulling new measures that could directly affect non-filers who withdraw cash from banks.
According to official sources, the government is likely to increase the tax rate on cash withdrawals for non-filers from 0.8 percent to 1.5 percent. The adjustment will apply to both bank counter withdrawals and ATM transactions, effectively doubling the current tax burden on non-taxpayers.
Experts believe that while the policy could raise up to Rs30 billion in annual revenue, it could also increase the expenses of everyday citizens, especially those outside the formal tax system.
The move comes as part of the government’s ongoing efforts to regain lost ground in revenue collection after the Federal Board of Revenue (FBR) missed its six-month target. The data shows that during the first half of the current fiscal year, the FBR managed to collect Rs2,885 billion against the set target of Rs3,083 billion, resulting in a significant shortfall.
Officials say these new measures are not only designed to raise immediate funds but also to encourage non-filers to register as taxpayers, which will strengthen Pakistan’s fiscal stability in the long run.
