Proposal to Impose Withholding Tax on Bank Cash Withdrawals

Hamariweb  |  Jun 07, 2023

Proposal to Impose Withholding Tax on Bank Cash Withdrawals

Withholding Tax on Cash Withdrawals and Increased Levies Among Key Recommendations

In the latest budget proposal, the Pakistan Business Council (PBC) has put forward a series of recommendations aimed at strengthening the country’s economy. These suggestions include the imposition of withholding tax on cash withdrawals from banks and a doubling of the advance income tax on cars for non-filers. Additionally, a shift towards withholding tax on purchase receipts instead of engine capacity has been suggested.

The primary target for domestic revenues in the upcoming fiscal year has been set at an ambitious $30 billion, with an estimated total revenue of $58.7 billion. To achieve this, the Federal Board of Revenue (FBR) has outlined several measures, including the reinstatement of the withholding tax on cash withdrawals from banks for non-filers. Previously abolished for withdrawals up to PKR 50,000 per day, this tax is now proposed to be reintroduced.

Furthermore, the FBR recommends reviving Sections 231, 231A, and 236P of the Income Tax Act, which would have implications for taxation in the country.

These proposed measures reflect the government’s efforts to bolster revenues and address the trade deficit, which is projected to reach $2.87 billion in the next fiscal year. While these recommendations may face scrutiny and potential modifications during the budget formulation process, they highlight the government’s focus on revenue generation and economic stability.

The post Proposal to Impose Withholding Tax on Bank Cash Withdrawals appeared first on Online English News - Latest Education, Business & Trending Enews.

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