The Federal Board of Revenue (FBR) has revealed that Prime Minister Shehbaz Sharif has rejected a plan to raise the tax on cash withdrawals from banks for non-filers in the run-up to the 2024–25 budget.
For bank withdrawals exceeding Rs50,000 made by non-filers, the idea was to increase the tax rate to 0.9%.
On bank withdrawals over this amount, non-filers are now charged a 0.6% withholding tax. Projected to bring in Rs20 billion from non-filers, the proposed hike was part of a larger plan to raise more money. In light of the possible financial hardship on non-filers, the prime minister chose not to approve the hike.
FBR officials noted the government’s position on preserving the current tax structure for these transactions, saying, “Prime Minister Shehbaz Sharif has rejected the proposal to increase the tax on cash transactions for non-filers.”
Since this decision affects the ongoing debates about fiscal policy and economic reforms, FBR officials have been required to inform the Finance Ministry in accordance with the PM’s directive.
The first suggestions for raising government employee pay have been made public by the Ministry of Finance. Although the PM will make the final decision after consulting with the Finance Ministry and the cabinet, sources within the ministry estimate a potential 15% to 20% pay increase for federal employees.
A significant recommendation is to raise the officials’ compensation policy. A suggested raise of Rs65,000 to Rs105,000 has been made for officers up to grade 20. The suggested salary increase for grade 21 officers is Rs120,000, up from Rs75,000. There could be a pay hike for grade 22 officers from Rs95,000 to Rs155,000.
