“Pakistan Budget 2025 introduces new ATM tax rules for filers and non-filers. Learn updated rates, thresholds, and how to avoid extra charges.”
📰 What’s Changed in 2025?
Pakistan’s Federal Budget 2025–26 has brought new changes to ATM withdrawal taxes and interbank fees. These changes are designed to widen the tax net, promote digital banking, and penalize non-filers who still prefer large cash transactions.
🧾 Key Highlights: ATM Tax Rules 2025
| Category | Filers | Non-Filers |
|---|---|---|
| Daily Limit | Rs. 50,000 (for tax to apply) | Rs. 75,000 (for tax to apply) |
| Withholding Tax | 0.3% (on amounts exceeding limit) | 0.8% (on amounts exceeding limit) |
| ATM Fee (Non-Host) | Rs. 35 to Rs. 75 per transaction | Rs. 35 to Rs. 75 per transaction |
🧠Why This Matters
The government’s intention is clear:
Reward tax filers. Penalize large cash handlers who avoid the tax net.
This isn’t just about revenue—it’s about formalizing the economy. Cash transactions are harder to track, easier to hide, and often evade taxes. These new rules incentivize the use of digital banking and e-payments.
🔍 Real Facts You Didn’t Know
1. Most People Still Don’t Know They’re Paying This Tax
Despite notices from banks, many account holders don’t realize that automatic tax deductions apply even at ATMs. These deductions go directly to FBR.
2. You Can Save Thousands Annually — Just By Filing Returns
For example, withdrawing Rs. 100,000 per week as a non-filer costs:
- Rs. 800/week Ă— 52 = Rs. 41,600/year in just taxes!
Compare that to filers, who pay only Rs. 15,600/year for the same amount.
3. ATM Fee Is Not Fixed — It Depends on Your Bank
- Some banks charge Rs. 35.
- Others go up to Rs. 75 if you’re using a non-host ATM (i.e., not your bank’s machine).
- Few banks silently deduct these charges without SMS alerts.
4. Digital Wallets May Bypass These Taxes
Using services like Raast, EasyPaisa, JazzCash, or mobile banking apps may allow users to:
- Avoid ATM fees.
- Escape daily withdrawal tax (as these aren’t “cash withdrawals”).
âś… Who Is Considered a Filer?
You are a filer if your name appears on FBR’s Active Taxpayer List (ATL). You can check this by:
- Visiting: https://iris.fbr.gov.pk/public/txplogin.xhtml
- Entering your CNIC or NTN
Filing a tax return — even with zero income — can put you on ATL and cut your tax rate nearly in half.
🛡️ How to Avoid Paying Extra
- Use your own bank’s ATM — avoid interbank charges.
- Stay within daily withdrawal limits (Rs. 50K or Rs. 75K).
- Go digital — use banking apps, QR payments, or Raast transfers.
- File your tax return to benefit from lower tax rates.
- Avoid cash withdrawals from counter unless necessary (same tax applies).
📉 The Real Impact on Common People
- Salaried workers who rely on monthly withdrawals may unknowingly lose thousands every year in taxes.
- Freelancers and online sellers, if non-filers, face double pressure: high tax on withdrawals and no business tax exemptions.
- Students and low-income earners with remittance accounts often don’t know that even they may be taxed if they exceed the limit.
📢 Final Thoughts
The 2025 ATM tax rules are not just financial policy—they are a call to join the formal economy. If you’re still a non-filer, you’re paying more for the same money. Digital alternatives, tax filing, and bank literacy can help you keep your hard-earned income intact.