Islamabad, March 3, 2025 – The Federal Board of Revenue (FBR) has successfully collected Rs 5.71 billion as advance tax on cash withdrawals during the first seven months (July–January) of the current fiscal year 2024-25. This tax applies to individuals making large cash withdrawals from banks who are not listed on the Active Taxpayers’ List (ATL). According to sources within the FBR, the reported tax revenue represents only the collections made by the Large Taxpayers Office (LTO) Karachi. Data from LTO Karachi indicates that the advance tax on cash withdrawals declined by 12% compared to the Rs 6.46 billion collected in the corresponding period of the previous fiscal year. The FBR enforces this tax under Section 231AB of the Income Tax Ordinance, 2001. Under this provision, all banking institutions are required to deduct an adjustable tax at a rate of 0.6% on cumulative daily cash withdrawals exceeding Rs 50,000, provided that the individual’s name does not appear on the ATL. This tax was initially introduced under Section 231A but was abolished in the Finance Act, 2021, only to be reinstated later with certain modifications. Officials at the FBR believe that the decline in tax…