Govt likely to increase tax rate on cash withdrawal
KARACHI: The government is expected to increase tax rate on cash withdrawal from banks, ARY News reported Friday.
A proposal in this regard was mooted in a pre-budget meeting in Islamabad. The officials of Federal Board of Revenue (FBR) suggested that a current tax rate of 0.3% on cash withdrawal from banks be increased to 0.6%
According to a source in FBR, the government will be able to collect Rs 30 billion if the new tax proposal on cash withdrawal was implemented.
Source informed that the Finance Minister Ishaq Dar had suggested to keep tax rate on 0.5% instead of the proposed 0.6%.
The government currently charges 0.3% tax on every Rs 50,000 withdrawal from banks.