ATM Cash Withdrawal Tax in Pakistan 2026 – Everything You Need to Know
The ATM cash withdrawal tax in Pakistan has become a key part of the government’s efforts to monitor financial transactions and increase revenue. Introduced under the Finance Act, this tax applies to withdrawals from ATMs above certain thresholds. Both personal and business accounts are affected, and the tax is automatically deducted during withdrawal.
ATM Cash Withdrawal Tax Details
| Bank Type | Withdrawal Limit per Month | Tax Rate |
|---|---|---|
| Personal Banks | Up to PKR 50,000 | 0% |
| Above PKR 50,000 | 0.3% to 0.6% | |
| Corporate/Business Accounts | No limit | 0.6% |
Key Points to Know
- The tax is deducted automatically by banks during withdrawals.
- Applies to both ATM and over-the-counter withdrawals.
- Intended to control unrecorded cash flow and boost digital transactions.
- Banks provide monthly tax statements for record-keeping and income tax filings.
Impact on Account Holders
Account holders are advised to plan withdrawals carefully to avoid unnecessary deductions. Businesses and frequent ATM users may consider digital transfers or cheques to reduce tax exposure.
