The Federal Board of Revenue (FBR) has raised tax rates on cash withdrawals and property transactions.
The latest measures are aimed at boosting tax compliance and increasing revenue collection from individuals outside the active taxpayer list.
The FBR has increased the tax deduction on cash withdrawals from banks by non-filers. The new tax rate is:
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0.8% on daily withdrawals exceeding Rs 50,000
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Previously, the rate was 0.6% for the same threshold
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All banking companies are now authorized to deduct advance adjustable tax from non-filers at the new rate.
Changes to property taxes under sections 236C and 236K
The FBR has also implemented changes in the advance tax rates on the purchase, sale, and transfer of immovable property, amending Sections 236C and 236K of the Income Tax Ordinance.
For property buyers:
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Up to Rs 50 million: Tax increased to 1.5% (previously 3%)
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Up to Rs 100 million: Tax reduced from 3.5% to 2%
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Above Rs 100 million: Tax reduced from 4% to 2.5%
For property sellers/transferors:
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Tax rate increased by 1.5%
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The aim is to adjust capital gains on property sales
According to the FBR, the revision is intended to balance tax collection while offering relief to genuine property buyers and improving the taxation of capital gains on property sales.
