Zero tax rate for withdrawal of up to Rs50,000 from bank

Islamabad: 0.6 percent advance tax has been imposed on non-filers withdrawing money from the bank.

According to details, the tax will be collected from those who are not included in the active tax payer list.

The circular issued by Federal Bureau of Revenue (FBR) stated that tax rate will be zero on withdrawal of money up to Rs50,000. Whereas Rs303 tax will be applicable on withdrawing money up to Rs50,500.

According to FBR, a tax of Rs330 will be charged on a withdrawal of Rs55,000. Tax of Rs450 will be collected from non-filers who withdraw Rs75,000.

The full amount of more than 50,000 rupees withdrawn from the bank in a day will be taxed. The tax will not be applicable to the federal and provincial governments. Foreign embassies and diplomatic missions in Pakistan will also be exempted from tax.