Senate Finance Committee proposes 0.4 WHT on withdrawals for non-filers

Senate Standing Committee meets under the chairmanship of Mr. Farooq Naik. The committee while deliberating on increasing the tax proposed a 0.4 percent withholding tax on cash withdrawals of Rs. 100,000 for non-filers.

Earlier, the limit of cash withdrawal was Rs 50,000 with a tax rate of 0.4 percent.

The said increased has been proposed by Mr. Shaikh Atique.

Furthermore, Federal Board of Revenue (FBR) is looking to search for information on depositors withdrawing Rs. 10 lakh per month to inspect their tax status.

In addition to that, FBR is also expected to collect data on depositors placing Rs. 1 crore per month in their bank as well.

The Committee informed that the FBR is seeking to increase its tax base and looking to gather data on those credit card holders spending Rs. 2 lakh per month or more.

The Committee, however, informed that FBR has no permission to get account check of any depositors directly