ISLAMABAD (PEN) : The federal government of Pakistan is considering a proposal to increase the advance tax on cash withdrawals from banks by non-filers in the upcoming financial year 2024-25. Here’s a breakdown of the key points:
1. *Proposal in Negotiations with IMF*: The proposal to hike the advance tax on cash withdrawals by non-filers has been presented during ongoing negotiations with the International Monetary Fund (IMF) regarding another bailout package for Pakistan.
2. *Increase in Tax Rate*: The Federal Board of Revenue (FBR) officials have proposed to raise the tax rate from the current 0.6 percent to 0.9 percent on cash withdrawals for non-filers, effective from the new fiscal year.
3. *Expected Revenue Generation*: If approved by the parliament in the upcoming budget, the proposal is expected to generate additional revenue of Rs15 billion from non-filers for the government.
4. *Budget Estimates*: The federal budget for the fiscal year 2024-25 is anticipated to be announced on June 7. Total projected expenditure is estimated to reach Rs16,700 billion, with significant allocations for interest payments, loans, and subsidies.
5. *Tax Revenue Projections*: Tax revenue is forecast to exceed Rs11,000 billion, with direct taxes contributing a significant portion. Sales tax and customs duty are also expected to contribute substantially to the overall revenue.
6. *Focus on Revenue Collection*: The proposed increase in advance tax on cash withdrawals reflects the government’s efforts to enhance revenue collection and improve fiscal sustainability, particularly in the context of negotiations with international financial institutions like the IMF.
Overall, the proposal to raise the advance tax on cash withdrawals by non-filers underscores the government’s commitment to fiscal discipline and revenue mobilization in Pakistan.
