ISLAMABAD: The federal government has decided to increase taxes on ATM and bank withdrawals by non-filers as part of its efforts to boost revenue collection and bridge the widening fiscal deficit.
According to official sources, the government is considering raising the withholding tax on cash withdrawals for non-filers from 0.8% to 1.5%. The proposal, if approved, is expected to generate an additional Rs30 billion in revenue during the second half of the ongoing fiscal year.
The measure comes amid a Rs200 billion revenue shortfall faced by the Federal Board of Revenue (FBR) for FY2025-26. So far, the FBR has collected Rs2,885 billion against a target of Rs3,083 billion for the first six months.
Sources added that the proposed step was discussed with the International Monetary Fund (IMF) during recent staff-level talks. While the government has opted not to introduce a mini-budget, it aims to achieve fiscal targets through alternative revenue measures.
Officials believe that imposing higher taxes on non-filers will not only help increase revenue but also encourage more individuals to become active taxpayers.
