The federal government has raised the cash withdrawal limit for non-filers from Rs50,000 to Rs75,000, offering relief to middle-income bank customers. However, withdrawals above this new threshold will be subject to a higher 0.8% advance tax, compared to the previous 0.6%. The decision, endorsed by FBR Chairman Rashid Langrial and approved by the National Assembly’s Finance Committee, aims to balance revenue collection with public convenience. Notably, Asaan Accounts remain exempt, ensuring low-income users are unaffected.
In a significant move, the government has scrapped the 3% to 7% federal excise duty on property purchases, including commercial, residential, and open plots. This controversial tax had faced resistance from the IMF, but authorities argued it was incorrectly applied to immovable assets. Meanwhile, sellers will now face higher withholding taxes—ranging from 4.5% to 5.5%—based on property value, while buyers see slightly reduced rates.
To revive the stock market, the government is rationalizing dividend tax rates on mutual funds, increasing taxes on government securities from 15% to 25% to encourage equity investments. Additionally, high-income earners (above Rs10 million/month) will see their surcharge reduced from 10% to 9% to curb brain drain. Tech giants like Google and Facebook will face a higher 15% tax on digital ads, pushing them to establish local offices.
Thar coal miners can now sell coal beyond the power sector, though tax credits will decrease proportionally. Meanwhile, a phased sales tax (10%-18% over four years) will be introduced in former FATA/PATA regions, despite opposition citing economic hardships. The FBR assures income tax exemptions will remain, with new measures aimed at preventing misuse of tax benefits. These changes are set to be finalized in the Finance Bill 2025-26 by month-end.
