The government is planning to increase taxes on non-filers who withdraw large amounts of cash daily. According to sources at the Federal Board of Revenue (FBR), the withholding tax rate on cash withdrawals above Rs50,000 may rise from 0.6% to 1.2%. This step aims to encourage more people to register as taxpayers and reduce cash transactions outside the banking system.
Moreover, the upcoming budget may raise sales tax on small cars. Locally made vehicles with engines smaller than 850cc could see a sales tax increase from 12.5% to 18%. In addition, the government is considering new taxes on petrol and diesel vehicles to promote cleaner and more efficient transportation options across the country.
In addition to these changes, the government is also looking to increase taxes on bank deposits, savings schemes, capital gains, and profits from dividends. These moves are part of a broader plan to increase government revenue. However, the government may lower the super tax rate, which targets wealthy individuals and companies.
Furthermore, these proposals are being discussed with the International Monetary Fund (IMF) as part of the country’s financial reforms. The government hopes that these tax changes will help reduce the budget deficit and stabilize the economy. Final decisions will be made after cabinet meetings and parliamentary approval.
In short, the budget aims to widen the tax base and improve revenue collection. The government wants to make the tax system fairer and reduce cash transactions. These tax measures will affect many people and sectors but are designed to support Pakistan’s economic growth. The official budget announcement is expected soon.