The Government is Considering Increasing Taxes on Cash Withdrawals and Others

The Government is Considering Increasing Taxes on Cash Withdrawals and Others
  • The government may increase taxes on cash withdrawals and other sectors for the new financial year, FY2024–FY2025. The IMF seeks expansion of the tax net.

The FBR has negotiated with the IMF to expand the tax net.

As part of the negotiations, the IMF approved FBR’s proposal to increase taxes on cash withdrawals. FBR seeks to increase the tax on cash withdrawals from 0.6 % to 0.9 %, increasing net revenue to Rs. 15 billion. 

The government also considers increasing taxes on the trade of property, increasing taxes on any property trade by Rs. 50 million or above. FBR seeks to bring PM Shehbaz Sharif and the parliament in confidence.

Moreover, FBR seeks to increase the withholding tax on vehicles 850 cc and above.

The IMF has insisted on entertaining the circular debt of the energy sector. The IMF pointed out Rs. 150 billion circular debt in the energy sector.

Also Read: Islamabad High Court (IHC) Recently Suspended The Federal Court Decision To Block SIMs Of Non-Filers

The Ministry of Energy may increase electricity prices from Rs. 5 to 7 in July.

Concerned with the energy sector’s failure to achieve the required target, the IMF pointed out the current circular debt, expected to reach Rs. 2500 billion by the end of this financial year.

The IMF has directed the energy sector to increase taxes on power and tariff taxes.

The debt was to amount to Rs. 2310 billion. It may, however, exceed the target of Rs. 150 billion by June.

The government is also considering bringing in small-scale businessmen into the tax net with the Tajir Dost Scheme. The government will hold legal action against non-registered individuals.

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