FBR Proposes Higher Cash Withdrawal Limit and New Digital Tax Measures in Finance Bill 2025-26
ISLAMABAD – The Federal Board of Revenue (FBR) is proposing a set of updates under the Finance Bill 2025-26, including an increase in the daily tax-free cash withdrawal limit for non-filers and new taxation policies for the digital and e-commerce sectors, ARY News reported.
Under the new proposal, the cash withdrawal limit for non-filers would increase from Rs. 50,000 to Rs. 75,000 per day. Withdrawals above this threshold would be subject to a 0.8% withholding tax, up from the previous 0.6%. This adjustment aims to encourage greater participation in the formal tax system and enhance financial documentation.
New E-Commerce Tax Guidelines
The Finance Bill also introduces specific tax rates for e-commerce transactions:
-
2% tax on online clothing sales
-
0.5% tax on electronics sales via digital platforms
-
1% tax on other online business activities
Registered e-commerce businesses will be required to provide customer billing details as part of their tax filings to promote transparency.
In addition, online retailers will not be allowed to pass on tax-related charges to customers. This move is intended to ensure fair pricing practices while strengthening tax compliance.
Digital Services Tax Adjustments
The government is also revising taxation on digital services and platforms, proposing an increase in the advance tax rate from 10% to 15% on services offered by global digital platforms such as Google, YouTube, and Facebook.
To attract international technology firms and promote local operations, a reduced tax rate of 5% is being proposed for digital companies that establish offices in Pakistan.
Role of Banks and Courier Services
The FBR has designated banks and courier companies as authorized agents for tax collection on digital and e-commerce transactions. This is part of a broader effort to improve enforcement and ease of compliance.
Broader Digital Tax Framework
As part of its digital economy strategy, the Government of Pakistan has introduced a new digital tax law aimed at revenue generated from a variety of online services, including:
-
Social media and video platforms (e.g., YouTube)
-
Streaming services for audio, video, and music
-
Cloud computing and data services
-
E-learning and telemedicine platforms
-
Online financial services and banking
These policy changes are intended to broaden the national tax base, enhance regulatory oversight, and support economic formalization in Pakistan’s rapidly growing digital sector.
