ATM Cash Withdrawal Tax Pakistan. The Pakistani government has introduced new rules for ATM Cash Withdrawal Tax Pakistan 2025, especially for people who are non-filers. If your name is not on the FBR Active Taxpayer List (ATL), the bank will deduct a withholding tax when your total cash withdrawal in one day crosses a fixed limit. If you are a filer, you are fully exempt from this tax.
This guide explains the new tax rate, daily limit, examples, exemptions, and all important updates for 2025.
ATM Cash Withdrawal Tax Pakistan 2025
| Program / Tax | Start Date | End Date | Rate & Threshold | How It Applies |
|---|---|---|---|---|
| Cash Withdrawal Tax for Non-Filers | 1 July 2025 (Finance Act 2025) | Ongoing | 0.8% on amount above Rs 50,000 per day (non-filers). Filers pay 0%. | Automatically deducted by bank |
| Daily Threshold (Non-Filers) | Same date | Ongoing | Rs 50,000 per day (proposal to increase to Rs 75,000) | Bank calculates total daily withdrawals |
Who Has to Pay This Tax?
Filers (On ATL)
- 0% tax
- No deduction on any ATM or branch cash withdrawal
- Fully exempt from daily withdrawal limits
Non-Filers (Not on ATL)
- Bank deducts 0.8% withholding tax
- Applies when total cash withdrawals exceed the daily limit
- Applies to both ATM cash withdrawals and branch counter withdrawals
ATM Cash Withdrawal Tax Rate & Limit in 2025
Daily Threshold
- Current limit: Rs 50,000 per day
- Government proposal: Increase limit to Rs 75,000 per day
- Many banks are still applying the Rs 50,000 limit until official notification updates.
Tax Rate
- Non-Filers: 0.8% on the amount exceeding the daily limit
- Filers: 0% (fully exempt)
How the Tax Works – Simple Examples
Example 1 – You Withdraw Rs 60,000 in One Day
- Threshold: Rs 50,000
- Amount above threshold: Rs 10,000
- Tax = 0.8% of 10,000 = Rs 80
Example 2 – You Withdraw Rs 200,000 in One Day
- Amount above threshold: Rs 150,000
- Tax = 0.8% of 150,000 = Rs 1,200
This applies whether the cash is withdrawn through:
- ATM
- Branch counter
- Multiple transactions in the same day
The bank calculates the total daily amount and deducts tax automatically.
Exemptions & Special Rules
1. Filers Are Fully Exempt
If your name is on the ATL, you do not pay this tax.
2. Foreign-Remittance Accounts
Accounts funded only by home remittances may have special exemptions.
Always confirm with your bank because conditions may vary.
3. Applies to Both ATM & Branch Withdrawals
This tax is not limited to ATM usage.
Any cash withdrawal is counted toward the daily limit.
Why Is Cash Withdrawal Tax Applied?
The government uses this tax to:
- Bring more people into the tax system
- Reduce undocumented cash transactions
- Encourage non-filers to become tax filers
- Improve documentation of banking activities
This tax works as an advance tax, which can be adjusted later if you become a filer.
What If the Limit or Rate Changes?
- The government has proposed raising the daily limit to Rs 75,000 for non-filers.
- The tax rate of 0.8% remains unchanged.
- Until banks update their systems, many still follow the Rs 50,000 limit.
Always check:
- FBR updates
- Bank notifications
- Finance Act changes
FAQs – ATM Cash Withdrawal Tax Pakistan 2025
1. What is the tax rate for ATM withdrawals in 2025?
Non-filers: 0.8% above Rs 50,000 per day.
Filers: 0% (exempt).
2. If I withdraw multiple times in one day, will the tax apply?
Yes. The bank adds up all daily withdrawals.
3. Has the limit increased to Rs 75,000?
Approved in proposals, but many banks still apply Rs 50,000 until official updates.
4. Are foreign-remittance accounts exempt?
Yes, under FBR-defined conditions. Confirm with your bank.
Conclusion
The ATM Cash Withdrawal Tax Pakistan 2025 applies only to non-filers who withdraw more than Rs 50,000 in a single day. A tax of 0.8% is charged on the amount exceeding the limit. Filers are fully exempt, and the limit may increase to Rs 75,000 soon. Staying compliant and monitoring your daily withdrawals can help you avoid unnecessary deductions.
