Banking Tax · Section 231AB

Tax on Cash Withdrawal in Pakistan (2026): 0.8% for Non-Filers

Non-filers pay 0.8% on the whole amount when cash withdrawn in a day exceeds Rs 50,000. Filers pay nothing.

By the PK Tax Calc team · Updated · Tax Year 2027

The rule: if you're not on the Active Taxpayers List and your cash withdrawals in one day add up to more than Rs 50,000, the bank deducts 0.8% of the full amount. Filers: 0%.

How much is deducted

Cash withdrawn in a dayFilerNon-filer
Rs 50,000Rs 0Rs 0
Rs 76,000Rs 0Rs 608
Rs 150,000Rs 0Rs 1,200
Rs 500,000Rs 0Rs 4,000
Rs 1,000,000Rs 0Rs 8,000

At exactly Rs 50,000 there is no tax — the limit has to be exceeded.

Worked example

A non-filer withdraws Rs 30,000 from an ATM in the morning and Rs 120,000 over the counter in the afternoon. The day's total is Rs 150,000, which exceeds Rs 50,000, so the bank deducts 0.8% × 150,000 = Rs 1,200. A filer withdrawing the same amounts pays nothing.

Who doesn't pay

  • People on the Active Taxpayers List.
  • Federal and provincial governments, and foreign diplomats and missions.
  • Anyone holding an exemption certificate from the Commissioner.

Can it be claimed back?

Yes. Tax under Section 231AB is an advance tax. Banks issue a withholding certificate; enter the amount in your return and it reduces the tax you owe. This is one more reason to become a filer — you stop paying it in future and recover what was deducted.

FAQ

Cash withdrawal tax questions

What is the tax on cash withdrawal for non-filers in 2026?
0.8% under Section 231AB, charged when the total cash a non-filer withdraws in a day exceeds Rs 50,000. Filers on the Active Taxpayers List pay nothing.
Is the 0.8% charged on the whole amount or only above Rs 50,000?
On the whole amount. Once the day's total goes above Rs 50,000, the bank deducts 0.8% of the full total — for example Rs 608 on Rs 76,000.
Is the Rs 50,000 limit per transaction or per day?
Per day. Withdrawals are added together across ATM, cheque and counter transactions on the same day, so splitting a withdrawal doesn't avoid the tax.
Can I get the cash withdrawal tax back?
Yes, it is an advance tax. If you file your income tax return, the amount shown on your bank's withholding certificate is adjusted against your yearly tax, and refunded if it exceeds what you owe.

Keep reading

Last reviewed: 3 October 2026

Sources

Estimates for planning only — not tax or religious advice. See our disclaimer, and tell us if you spot an error.