Taxes on cash withdrawals from banks could be increased in the next budget, according to new reports.

The suggestion to increase the tax rate has been discussed in recent negotiations between Pakistani authorities and the International Monetary Fund (IMF) team.

According to sources, currently, a 0.6% advance tax is levied on cash withdrawals exceeding Rs50,000 by non-filers from banks.

However, it is now being suggested by the Federal Board of Revenue (FBR) to raise the tax rate from 0.6% to 0.9% on cash withdrawals by non-filers.

Sources state that an estimated amount of more than Rs15 billion is expected to be collected annually through the advance tax on cash withdrawals.

Furthermore, there is a possibility of increasing taxes on income from non-essential and luxury items in the upcoming budget.

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In the future budget, there is a possibility of further tax increases on imported vehicles with an engine capacity exceeding 1300cc.

Additionally, a proposal has been made to increase withholding tax on all new vehicles with an engine capacity exceeding 850cc.

Sources also revealed that the government is considering imposing additional taxes on the purchase and sale of properties valued at fifty million rupees or more.