The government intends to reinstate the withholding tax (WHT) on cash withdrawals made by non-filers from banks.
In the upcoming budget, the Federal Board of Revenue (FBR) is reportedly considering reinstating a withholding tax (WHT) on cash withdrawals, banking transactions, and banking instruments by non-filers.
The planned withholding tax on non-filers’ banking activities is expected to generate close to Rs. 45 billion in revenue.
Govt. Planning on WHT in Upcoming Budget 2023-24
On the other hand, the government has chosen to eliminate withholding taxes in the upcoming budget (2023–24) because they have a minimal revenue impact on the collection of direct taxes.
The low yield withholding taxes may be eliminated in the future federal budget (2023–24), according to sources.
Section 236CB was added to the mini-budget in February 2023 to allow for the collection of advance taxes (withholding tax) of 10% on the entire bill from anyone planning or hosting a party in a wedding hall, marquee, hotel, restaurant, commercial lawn, club, etc.
To read our blog on “In new budget, Telco’s wants WHT to be removed on cellular services,” click here.
