Govt to Offer Ineligible Persons Relief on Cash Withdrawal

A major change has been proposed in the amended Finance Bill 2025 that could benefit individuals classified as ineligible under Pakistan’s tax laws. These individuals will now be allowed to withdraw up to Rs100 million in cash annually from their bank accounts.

Earlier, the Finance Bill 2025 aimed to impose strict financial restrictions on ineligible persons, mainly those who did not file income tax returns or failed to declare enough assets. They were to be barred from significant financial activities such as buying property, investing in securities, or making large withdrawals.

However, after a review by the National Assembly’s Standing Committee on Finance, the government revised its position.

One of the bill’s key components is the introduction of Section 114C to the Income Tax Ordinance, 2001, which defines eligible and ineligible individuals. An “eligible” person is one who files a tax return and declares adequate wealth. Those who don’t meet these conditions are labeled “ineligible.”

The revised bill, however, softens the earlier stance. “Ineligible persons would now be permitted to withdraw up to Rs100 million in cash annually across all their bank accounts.”

This amendment marks a shift in the government’s approach, showing flexibility in its earlier strict efforts to promote tax compliance and financial transparency.

The Rs100 million withdrawal limit will apply collectively to all accounts held by an individual.