Last Updated on: 29th June 2023, 11:50 pm
Federal Govt Will Reintroduce The Withholding Tax On Cash Withdrawals
The government is considering reintroducing a withholding tax on cash withdrawals from banks by non-depositors.
Sources told media representatives that the Federal Board of Revenue (FBR) is considering reintroducing a withholding tax on cash withdrawals, bank instruments, and bank transactions by non-filers in the next budget.
The revenue impact of the proposed withholding tax on bank transactions by non-declarants is nearly Rs 45 billion.
On the other hand, the government has decided to abolish withholding taxes, which will have less impact on direct tax collection in the next budget (2023-24).
Sources have told media representatives that the withholding tax on low income may be eliminated in the next federal budget (2023-24).
Under the February 2023 mini-budget, Article 236CB was inserted to levy a 10% pre-tax (withholding tax) on the total amount of the bill of a person organizing or celebrating a reception at weddings, marquees, hotels, etc. Restaurant, commercial lawn, club, etc.
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