The Federal Board of Revenue (FBR) is rolling out stringent measures for high-income taxpayers. FBR Limits Cash Withdrawal and Plot Purchases For High Earners. This initiative aims to increase tax compliance and meet the ambitious revenue target of Rs 12.97 trillion for the fiscal year.
Starting soon, compliant taxpayers earning over Rs. 10 million will face restrictions on cash withdrawals. They can withdraw a maximum of Rs. 30 million annually. Additionally, when it comes to purchasing property, they must provide proof of income sources. This new rule aims to enhance transparency and accountability.
For those earning less than Rs. 10 million, the restrictions are also significant. They will need to justify their income before buying cars, plots, or investing in securities and mutual funds. The FBR believes these measures will help in narrowing the tax gap and boosting revenue collection.
The backdrop to these changes includes a notable revenue shortfall in the July-September quarter. Despite this, Prime Minister Shehbaz Sharif has ruled out a mini-budget. Instead, Finance Minister Muhammad Aurangzeb is set to meet with IMF officials next week. The government is looking to address economic challenges while ensuring compliance.
Summary of FBR Measures
| Income Level | Cash Withdrawal Limit | Car Purchase Requirement | Property Purchase Requirement |
|---|---|---|---|
| Over Rs. 10 million | Max Rs. 30 million/year | Proof of income required | Proof of income required |
| Less than Rs. 10 million | Justification needed | Justification needed | Justification needed |
The FBR’s new enforcement measures signify a shift towards stricter tax compliance. While these changes may impose challenges, they also aim to strengthen the overall economic framework. Taxpayers must stay informed and prepared to navigate these evolving regulations. Stay tuned for more information.
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