Monday, June 17, 2024

Here’s How Much Tax Non Filer Have to Pay for Over Rs. 50,000 Cash Withdrawals Per Day

The Federal Board of Revenue (FBR) has changed the tax rates for people who are not active taxpayers to increase tax collection from them. For cash withdrawals below Rs50,000 per day, there will be no tax deduction. However, for those who are not active taxpayers, the bank will deduct varying amounts of tax depending on the amount of cash withdrawn.

For motor vehicles with engine capacities of 2001cc and above, there will be a tax rate of 6%, 8%, and 10% based on the vehicle’s value. For non-active taxpayers, these rates will be increased by 200%, resulting in higher taxes.

The withholding tax rates on the sale and purchase of immovable property have been increased from 2% to 3%. This means that when transferring property, a higher tax percentage will be collected from both the seller and the purchaser.

To discourage unnecessary outflow of foreign exchange reserves, withholding tax rates on payment to non-residents through a debit/credit card have been increased from 1% to 5% for active taxpayers and from 2% to 10% for non-active taxpayers.

The Finance Act 2023 has also introduced a new section where a Rs200,000 advance tax will be collected from any Pakistan authority issuing or renewing a domestic aide visa for foreign domestic workers. This advance tax can be adjusted against the tax liability assessed for a tax year.

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