People are searching for ATM Cash Withdrawal Tax Pakistan 2025 because the government has made big changes this year. According to the Finance Act 2025, non-filers will now pay higher tax if they withdraw more than the allowed daily limit, while filers remain safe from this tax. In this article, we will explain the new tax rate, limits, examples, exemptions, and how it will affect both filers and non-filers.
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Table of Contents
What ATM Cash Withdrawal Tax Pakistan Changed in 2025?
The government has officially revised the rules for ATM cash withdrawals. Earlier, non-filers had to pay 0.6% tax if they withdrew more than Rs. 50,000 in a single day. From 2025, the tax rate has been increased and the limit has also been revised.
Key Updates:
- Tax Rate Increased → From 0.6% to 0.8%.
- Daily Limit Increased → From Rs. 50,000 to Rs. 75,000.
- Filers Exempted → Those who are on the Active Taxpayer List (ATL) will not pay this tax.
This change was introduced to push more people into the tax net and reduce the use of cash in the informal economy.
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Filers vs Non-Filers: How the Tax Works
| Status | Daily Threshold | Tax Rate | Who Pays? |
| Filer (ATL) | Rs. 75,000 | 0% | No tax on withdrawals |
| Non-Filer | Rs. 75,000 | 0.8% | Tax applies on amount above threshold |
Examples of Tax Calculation
To make it easy, let’s see two cases:
| Withdrawal Amount | Status | Taxable Amount | Tax Payable |
| Rs. 100,000 | Non-Filer | 25,000 | Rs. 200 |
| Rs. 120,000 | Filer | 0 | Rs. 0 |
Exemptions & Special Cases
Not all withdrawals are taxed. Some key exemptions include:
- Withdrawals from accounts funded only through foreign remittances.
- Some branchless banking accounts may be exempt under specific rules.
- Filers remain completely exempt from this tax.
It is important to note that this withholding tax is separate from bank service charges or ATM usage fees. Even if your bank charges you for using another bank’s ATM, that fee has nothing to do with the government’s tax.
Why Did the Government Make This Change?
The decision to increase the tax rate and threshold is part of the government’s strategy to:
- Discourage non-filers from making large untracked cash withdrawals.
- Encourage more people to register as filers.
- Reduce informal cash circulation and improve financial transparency.
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Impact of the New Tax
- For Non-Filers: Higher costs on withdrawals and reduced anonymity.
- For Filers: Full exemption, encouraging tax compliance.
- For the System: Better tracking of cash flows and stronger revenue collection.
Conclusion
The ATM Cash Withdrawal Tax Pakistan 2025 has introduced stricter rules for non-filers with a new rate of 0.8% and a daily withdrawal threshold of Rs. 75,000. Filers remain fully exempt, giving people a clear incentive to join the tax system. This move aims to expand the tax net, reduce cash circulation, and improve transparency in Pakistan’s financial sector.
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