Pakistan to tighten tax net, raise levy on bank withdrawals by non-filers

By our Staff Reporter Muhammad Shahzad
Lahore, Pakistan — The Federal Board of Revenue (FBR) has decided to tighten Pakistan’s tax net, with plans to increase levies on bank and ATM transactions by non-filers as part of broader efforts to boost government revenue.

According to official sources, the government is considering raising the tax on cash withdrawals from banks by non-filers from 0.8% to 1.5%, a move expected to generate an additional Rs 30 billion (about USD 108 million) in revenue. The measure aims to push millions of non-filers to register under the tax system while contributing more to the state treasury.

Officials say the decision is part of a larger strategy to address a revenue shortfall of Rs 200 billion in the second half of the current fiscal year. The FBR reportedly collected Rs 2,885 billion in the first six months, falling short of its Rs 3,833 billion target.

Sources also confirmed that these proposals were discussed during staff-level talks with the International Monetary Fund (IMF). However, the government has decided not to introduce a mini-budget, focusing instead on administrative measures to improve tax compliance.