Karachi, November 25, 2024 – The Federal Board of Revenue (FBR) has mandated banks to deduct 0.6% advance tax on cash withdrawals exceeding PKR 50,000 in a single day from individuals not listed on the Active Taxpayers List (ATL). This directive has been issued under Section 231AB of the Income Tax Ordinance, 2001, aiming to enhance tax compliance and documentation in the economy. The FBR clarified that banks are obligated to collect this tax from non-ATL individuals at the time of withdrawal. The regulation, which applies to aggregate daily cash withdrawals exceeding PKR 50,000, serves as a deterrent for non-compliance with tax laws. According to the FBR, this measure is expected to not only improve tax collection but also encourage individuals to register as taxpayers and regularly file returns. The FBR explained the provision under Section 231AB: “Every banking company shall deduct advance adjustable tax at the rate of 0.6% of the cash withdrawal from a person whose name is not appearing in the active taxpayers’ list on the sum total of the payments for cash withdrawal in a day, exceeding fifty thousand rupees.” This policy targets non-ATL persons, who are often perceived as evading their fair share of taxes. The FBR has reiterated its commitment to ensuring a level playing field for all taxpayers by…