FBR Increases Tax on Bank Withdrawals for Non-Filers | New Property Tax Rates 2025
The Federal Board of Revenue (FBR) has introduced new changes in taxation that directly impact non-filers in Pakistan. From now on, anyone withdrawing large amounts of cash from their bank account without being registered as a taxpayer will face a higher tax deduction.
This decision is part of a broader strategy to encourage people to become tax filers and to reduce the country’s undocumented cash economy.
What’s Changing for Bank Withdrawals?
Previously, if you were not on the Active Taxpayers List (ATL) and you withdrew more than Rs. 50,000 in a day, the bank would deduct 0.6% tax from the withdrawn amount.
Now, under the revised policy:
- Daily withdrawals above Rs. 50,000 will be taxed at 0.8%.
- The change applies only to non-filers.
- Every bank in Pakistan is legally authorized to collect this Advance Adjustable Tax.
For example, if you withdraw Rs. 100,000 in a single day:
- Before: Rs. 600 tax was deducted.
- Now: Rs. 800 tax will be deducted.
It’s a small percentage, but for frequent large withdrawals, this increase can quickly add up.
Impact on Non-Filers
The move is designed to make banking more expensive for non-filers, pushing them to register as taxpayers. Non-filers already face higher taxes on a variety of transactions — from buying cars to property deals — and this new measure adds another financial disadvantage.
In simple words: The government is making it more costly to stay out of the tax net.
Changes in Property Transaction Taxes
Alongside the bank withdrawal tax update, FBR has also revised tax rates for buying and selling property.
For Buyers — Tax Relief Introduced
If you’re purchasing property, you might pay less tax than before:
- Up to Rs. 50 million → Tax reduced from 3% to 1.5%.
- Up to Rs. 100 million → Tax reduced from 3.5% to 2%.
- Above Rs. 100 million → Tax reduced from 4% to 2.5%.
This is aimed at encouraging property investment and easing the burden on buyers.
For Sellers — Tax Rates Increased
If you’re selling property, however, the story is different:
- Each tax slab has been increased by 1.5%.
- This is meant to adjust for capital gains tax — the tax on profit earned from selling property at a higher price than you bought it.
In other words, sellers will now contribute more to the government when they make a profit on property sales.
Why the Government is Making These Changes
FBR’s latest measures are not random — they serve a few key purposes:
- Encourage Tax Filing: Higher costs for non-filers act as a push to register as taxpayers.
- Promote a Documented Economy: Reducing reliance on cash transactions helps track money flow and prevent tax evasion.
- Increase Revenue: Higher taxes on profitable property sales and bank withdrawals help the government fund development projects.
- Balance the Market: By giving relief to buyers and increasing costs for sellers, the government aims to create a fairer property market.
Frequently Asked Questions (FAQs)
Who is a Non-Filer?
A non-filer is an individual whose name does not appear on the Active Taxpayers List maintained by FBR. This usually means they have not submitted their annual income tax returns.
What is the Active Taxpayers List (ATL)?
The ATL is a database of people and businesses who have filed their taxes for the year. Being on the list means you pay lower taxes on various transactions.
What is Advance Adjustable Tax?
This is a tax collected at the time of transaction — for example, when withdrawing money from a bank. It can be adjusted against your total annual tax liability when you file your return.
Why do property sellers have to pay more tax now?
The extra 1.5% per slab is meant to cover capital gains tax, which is based on the profit made from selling property.
How can I avoid paying these higher rates?
The only way to avoid higher non-filer rates is to file your income tax return and get your name added to the ATL.
Final Thoughts
The FBR’s decision to increase tax on bank withdrawals for non-filers and adjust property transaction taxes is a clear signal: Pakistan wants more people to enter the tax system.
While property buyers get some relief, property sellers and non-filers withdrawing large sums will feel the pinch. This strategy might frustrate some in the short term, but in the long run, it could lead to a more transparent, documented, and fair economy.
If you regularly make large cash withdrawals or deal in property, it might be time to consider becoming a filer. Not only will it save you money, but it will also put you on the right side of the law — and perhaps even give you peace of mind when handling big transactions.
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