The Federal Board of Revenue (FBR) has issued a groundbreaking circular, offering significant relief with Tax-Free bank withdrawals up to Rs50,000 for individuals in Pakistan. The latest update eases the burden on small-scale transactions and provides financial respite to millions of taxpayers.
Tax-Free Bank Withdrawals: No Tax on Withdrawals up to Rs50,000
Under the revised policy, individuals can now access their funds without any additional financial deductions for withdrawals up to Rs50,000. This move aims to alleviate the tax burden on low-value transactions and promote a more taxpayer-friendly environment. Transactions below the Rs50,000 threshold will remain untaxed, offering further financial relief to individuals and facilitating easy access to funds.
Tax Rates for Specific Withdrawal Ranges
For withdrawals ranging from 50,001 to 50,500 rupees, a nominal tax of 303 rupees will apply. Similarly, withdrawals of Rs55,000 will incur a tax of Rs330, while non-filers withdrawing Rs75,000 will face a tax of Rs450. It is important to note that these new tax rates only apply to the portion of the withdrawal that exceeds the Rs50,000 threshold.
Extending Tax Exemption to Governments and Diplomatic Missions
The FBR circular also extends the tax exemption to federal and provincial governments, as well as foreign embassies and diplomatic missions operating in Pakistan. This move fosters a more cooperative financial landscape and strengthens diplomatic relations.
The revised tax policy by the FBR represents a progressive step towards easing financial burdens on individuals. With the exemption on bank withdrawals up to Rs50,000, taxpayers can now access their funds without any tax implications, promoting a smoother financial landscape in the country. The government’s efforts to facilitate small-scale transactions and foster a taxpayer-friendly environment bode well for a thriving economy.
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