Pakistan 2025: Updated Tax Rate and Limits for ATM Cash Withdrawals
Searching for the latest ATM cash withdrawal tax in Pakistan for 2025? Here’s a brief overview: only non-filers face withholding tax on daily cash withdrawals that exceed the threshold, while filers (on the ATL) are exempt. Below, you’ll see the official rate, limit, exemptions, and straightforward examples—kept clear and properly referenced.
2025 Overview (What has changed?)
- Who is liable? Non-filers (not on the ATL). Filers are exempt from withholding tax on cash withdrawals.
- Rate (Finance Act 2025): 0.8% advance tax on eligible cash withdrawals by non-filers.
- Daily threshold: Discussions suggested a rise to Rs 75,000, but credible updates post-1 July 2025 suggest the Rs 50,000 daily limit remains in effect. The proposed Rs 75,000 threshold mentioned in mid-June was not included in the clarifications released in early July.
Bottom line: Currently, expect 0.8% tax on non-filers for amounts exceeding Rs 50,000 per day; filers incur a 0% rate.
Rate & Limit Overview (2025)
| Status | Daily Threshold | WHT on Cash Withdrawal (ATM/branch) | Source |
|---|---|---|---|
| Filer (on ATL) | Rs 50,000 | 0% | ProPakistani |
| Non-filer | Rs 50,000 | 0.8% (Finance Act 2025) | PwC Pakistan |
Note: “ATM cash withdrawal tax” is the same withholding rule that applies to any bank cash withdrawal—whether through ATM or over the counter.
Key Exemptions (still applicable)
branchless banking agent accounts and PKR accounts solely funded by foreign remittances (subject to specific conditions/certificates). Always verify with your bank or tax consultant.
Quick Examples (Non-filer)
- Withdraw Rs 60,000 in a day: Taxable amount = 60,000 − 50,000 = 10,000 → 0.8% = Rs 80.
- Withdraw Rs 200,000 in a day: Taxable amount = 150,000 → 0.8% = Rs 1,200.
Common Misconceptions, Clarified
- “Filers also pay 0.3%.” Previous years included discussions about 0.3% for filers; recent clarifications confirm that filers are exempt from withholding tax on cash withdrawals.
- “ATM fee = tax.” Bank ATM fees are distinct service charges, not governmental tax. (Banks did adjust some fees in 2025, but that’s separate from WHT.)
FAQs
Q1. What is the ATM cash withdrawal tax rate for 2025?
0.8% for non-filers on daily withdrawals exceeding Rs 50,000; 0% for filers.
Q2. Is the tax applicable if I withdraw multiple times in a single day?
Yes. The total of the day’s withdrawals is assessed against the threshold.
Q3. Was the limit raised to Rs 75,000?
It was suggested/reported in June 2025, but after-July clarifications indicate the Rs 50,000 operating threshold is still in place. Monitor official FBR circulars for any updates.
Q4. Are accounts funded solely by foreign remittances exempt?
Yes, if deposits are exclusively from foreign remittances (according to notified conditions).
Q5. Is the ATM withdrawal tax refundable?
It is an advance/withholding tax; non-filers generally cannot claim benefits unless they become compliant. Filing and being listed on the ATL prevents the deduction in the future.
Conclusion
ATM Cash Withdrawal Tax in Pakistan for 2025 varies based on your ATL status. If you appear on the Active Taxpayers List (ATL), you’re exempt from withholding tax; otherwise, a 0.8% tax applies on daily withdrawals exceeding Rs. 50,000. Keep an eye on the latest FBR notifications, as the withdrawal threshold may potentially rise to Rs. 75,000 in coming updates.