Banks to limit cash withdrawals for non-filers from July 1

ISLAMABAD: Starting July 1, banks across Pakistan will restrict cash withdrawals by people who are not on the active taxpayer list, as per the amended Finance Bill 2025-26.

According to the bill’s revised Section 114C, titled “Restriction on economic transactions by certain persons,” banks will not allow non-filers to withdraw more than a specific amount in cash.

The exact limit will be mentioned in the Fifteenth Schedule of the Finance Bill, which is yet to be announced.

Earlier, the government had proposed that banks should not open or maintain accounts for non-filers, except for Asaan Accounts and Pensioner Accounts.

FBR can now suspend non-filers’ bank accounts for three days at a time

They also suggested capping withdrawals, but the latest version makes the rule clearer by adding a direct restriction on cash withdrawals above a fixed limit.

Another key change in the Finance Bill affects pensioners. Now, pension or annuity income (counted under “income from other sources”) will be taxed as per new rates mentioned in the tax schedule.

The move is part of the government’s effort to tighten control on non-filers and boost tax compliance.