The federal government has increased the cash withdrawal limit for non-filers from Rs50,000 to Rs75,000 per day, under the revised budget proposals for FY2025-26. However, in a move to generate more revenue, the advance tax on withdrawals above this limit will rise to 0.8%, up from the current 0.6%.
This adjustment, approved by the National Assembly’s Standing Committee on Finance, aims to balance public convenience with stronger enforcement of tax laws. Non-filers—people not registered with the Federal Board of Revenue (FBR)—are already under tight restrictions, including bans on buying vehicles and property.
Additionally, the government plans to curb financial privileges for non-filers further, possibly restricting access to bank account openings and certain investments. The goal is to pressure non-filers into joining the formal tax net and increase documentation of the economy.
At the same time, digital platforms, especially social media companies, will face higher advertising taxes, as part of the revenue-raising drive. Meanwhile, high-income earners are expected to get a 9% reduction in income tax surcharge, although only for the top-earning bracket.
These combined measures reflect a two-pronged strategy: easing minor limits for practical use while clamping down harder on tax evasion—with a clear message that those avoiding taxes will face tighter scrutiny and higher costs.