Tax rates on cash withdrawn from banks not revised: FBR

ISLAMABAD: The Federal Board of Revenue on Wednesday clarified that the government had not revised rates or limits for tax on cash withdrawal from bank accounts and on issuance of cash denominated bank instruments.

Rejection the news circulation on social media, FBR’s spokesperson said, “There has been no change in cash limits or tax rates in any of the two provisions of law.”

He further clarified that these withholding provisions were applicable only to non-filers

Finance Minister Asad Umar on January 23 had presented the Pakistan Tehreek Insaf (PTI) government’s third finance bill which was also the second supplementary budget by this government in the National Assembly.

Speaking in the National Assembly, Asad Umar had said that it was not a budget, but a package for economic reforms. “The government wants a resolution to economic woes of the country”, he said, adding that the government didn’t want next governments to complain about previous government’s [economic] wrongdoings.

‘Supplementary Finance Bill 2019’ in a nutshell

Income tax on banks offering loans for agriculture, low-income housing scheme, and small businesses reduced from 39 per cent to 20 per cent
Non-filers can buy cars above 1300cc but with increased tax
Duty on cars above 1800cc fixed at 25 per cent
Withholding tax on banking transactions abolished for tax filers
Six per cent tax on business bank accounts abolished; super tax on non-banking companies to be repealed from July 1
Duty on import of newsprint abolished
Duty slashed on the import of artificial kidney, medical equipment, footwear; duties on raw material for home appliances, diapers and sanitary products furniture, ceramics, reduced
Three different taxes on cell phones clubbed into one; tax on expensive mobile phones not being reduced
Promissory note scheme being introduced for exporters.
Advance tax on stock exchange members abolished.
Income tax slab for small marriage halls decreased from Rs. 20,000 to Rs. 5000
Greenfield projects to be exempted of all taxes including sales tax
Five-years income tax immunity on investment in Greenfield projects
Investment in solar-energy projects exempted from taxes