ISLAMABAD: With the aim to promote digital payment, Federal Board of Revenue (FBR) has exempted withholding tax on cash withdrawal by branchless banking agents.
In Circular No. 4 of 2017 issued by the FBR stated that tax at the rate of 0.3 percent and 0.6 percent is deducted upon aggregate cash withdrawals exceeding Rs.50,000 per day by filers and non-filers respectively.
In order to promote digital payments in the country exemption has been accorded to branchless banking agents operating under the Asaan Mobile Account Scheme from withholding tax on cash withdrawals made for the purpose of making payments to their respective customers.
