Big Increase in Taxes for Non-Filers in 2025-26 Budget
The newly announced federal budget for 2025–26 has introduced strict and impactful tax measures targeting non-filers.
Cash Withdrawals – Tax Rate Increased, Limit Raised
Non-filers who withdraw cash from banks will now face a higher advance tax.
Previous Rule: 0.6% tax on daily cash withdrawals exceeding Rs. 50,000.
New Rule: Tax increased to 0.8%, and now applies only if daily withdrawals exceed Rs. 75,000.
👉 Example: If a non-filer withdraws Rs. 100,000 in one day, they will pay 0.8% tax
Higher Withholding Tax on Services and Online Sales
The budget has also increased taxes on payments made to non-filers in several areas:
📌 Specified services: Withholding tax increased from 4% to 6%.
📌 Other (unspecified) services: Tax set at a flat 15%.
Conclusion
In the 2025–26 federal budget, the government has taken bold steps to pressurize non-filers into the formal economy. Higher taxes on cash, bans on key financial activities, and tighter restrictions are all meant to promote documentation and ensure more people contribute to the national revenue. These reforms aim to strengthen the economy and meet Pakistan’s financial commitments.
