ISLAMABAD – The latest fees increase and new taxes on bank transactions have sparked anger among account holders across Pakistan, as both the government and banks introduce higher charges. Non-filers have been hit the hardest, facing new deductions and additional service costs.
Under the revised tax policy, non-filers now face a 0.8% withholding tax on bank withdrawals. Alongside this, commercial banks have also raised several service charges, including ATM card fees, SMS alert costs, and charges for using other banks’ ATMs. The fees increase applies almost equally to both filers and non-filers, leaving many customers frustrated.
According to the State Bank of Pakistan, the fees increase was implemented by 1Link, the national interbank network, not directly by the central bank. However, the impact has been significant. Using another bank’s ATM now costs more, with a Rs. 50,000 withdrawal incurring nearly Rs. 80 in service fees.
ATM card issuance and renewal fees have risen by Rs. 700, while the SMS alert service—once priced at Rs. 1,200 per year—has now climbed to Rs. 2,000. Non-filers making cash withdrawals through cheque counters will also face taxes, paying Rs. 522 for every Rs. 20,000 withdrawn.
Banks have imposed strict withdrawal limits as well. Standard debit card users can withdraw between Rs. 25,000 and Rs. 50,000 per day, while premium card holders can access up to Rs. 500,000 daily. For foreign debit cards, limits range from $200 to $500. Any withdrawal exceeding Rs. 50,000 in a single day triggers automatic tax deductions.
International ATM transactions will now include either percentage-based fees or fixed charges, depending on each bank’s policy.
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The combination of rising taxes and bank service charges has led to growing disputes between customers and bank staff. Banking experts warn that the new cost burden could discourage digital transactions and push more people toward cash-based dealings, undermining efforts to expand Pakistan’s formal banking system.
