Pakistan, June 2 -- The government is planning to increase taxes on non-filers who withdraw large amounts of cash daily. According to sources at the Federal Board of Revenue (FBR), the withholding tax rate on cash withdrawals above Rs50,000 may rise from 0.6% to 1.2%. This step aims to encourage more people to register as taxpayers and reduce cash transactions outside the banking system.

Moreover, the upcoming budget may raise sales tax on small cars. Locally made vehicles with engines smaller than 850cc could see a sales tax increase from 12.5% to 18%. In addition, the government is considering new taxes on petrol and diesel vehicles to promote cleaner and more efficient transportation options across the country.

In addition to these c...