The Federal Board of Revenue (FBR) announced a revised tax policy for bank withdrawals on Thursday. Withdrawals of up to 50,000 rupees will now be completely ‘tax-free’ under the new arrangement.
Individuals would no longer be taxed on withdrawals of up to Rs50,000 from their bank accounts, according to the latest circular published by the FBR.
This judgment will relieve the burden on small-scale transactions for millions of taxpayers.

Read more : FBR updates the export facilitation program
Prior to this modification, non-filers making bank withdrawals were subject to a 0.6% tax.
Individuals who were not on the list of active taxpayers were subject to the tax.
All of this makes it easier for customers to access their funds without incurring any additional financial costs. A minimal tax of 303 rupees would be levied on withdrawals between 50,001 and 50,500 rupees.
According to the revised tax policy, a tax of Rs330 will be levied on withdrawals of Rs 55,000, while a tax of Rs450 will be levied on non-filers removing Rs75,000. The new tax rates will apply only to the portion of the withdrawal that exceeds the Rs50,000 threshold.
It is vital to note that the total amount withdrawn from the bank in a day will be taxed only if it exceeds Rs50,000. Transactions below this threshold are exempt from taxation.