Maps
Magazine

TRADE & ECONOMY

Govt Raises Cash Withdrawal Limit for Non-Filers, Hikes Tax Rate
Cash withdrawal limit for non-filers raised from Rs 50K to Rs 75K with 0.8% tax. Social media ads to face tougher taxation; income tax surcharge cut by 9% for top earners.
ND
by News Desk
2025-06-14
Govt Raises Cash Withdrawal Limit for Non-Filers, Hikes Tax Rate

In a significant revision to the budget proposals for the fiscal year 2025–26, the government has increased the cash withdrawal limit for non-filers from Rs 50,000 to Rs 75,000, with a higher advance tax rate of 0.8% applicable on amounts exceeding the new threshold.

According to a report by Jang and The News, the new rate is an increase from the current year’s 0.6%, and is aimed at tightening compliance and discouraging cash-based transactions among non-tax filers.

The move is part of broader fiscal reforms introduced to expand the tax base and ensure greater documentation of the economy. The Finance Committee of the National Assembly has approved these measures as part of the ongoing budget deliberations.

In a separate but related development, social media platforms will now face stricter taxation on advertisements, a move likely to impact digital ad spending across platforms such as Facebook, Google, TikTok, and others. The exact implementation details are expected to be shared in the final budget document.

At the same time, a 9% reduction in income tax surcharge has been announced for the highest earning individuals, potentially benefiting high-income taxpayers and aiming to encourage investment and economic participation from top earners.

These revisions signal the government's effort to balance revenue generation with investment incentives, while also targeting the shadow economy and improving compliance through indirect tax tools.

The final version of the Budget 2025–26 is expected to be tabled and debated in the National Assembly in the coming days.

 
Tagged:

NonFilers

Budget2025

TaxPolicy

CashLimit
Share News: