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ISLAMABAD: The National Assem­bly’s Standing Committee on Finance and Revenue has approved an increase in the minimum threshold for daily cash withdrawals, raising it from Rs50,000 to Rs75,000 while rejected a separate proposal to impose an additional 2 per cent sales tax on online purchases, signalling resistance to new digital levies amid growing e-commerce activity.

Chaired by MNA Naveed Qamar, the committee also gave its nod to increasing the withholding tax rate on cash withdrawals — from 0.6pc to 0.8pc. However, the committee struck down a parallel proposal to raise the tax from 15pc to 20pc on loan profits earned by banks.

Among other decisions, the committee endorsed the government’s proposal to increase the tax on services provided by digital platforms such as Google and YouTube from 10pc to 15pc. A separate proposal to levy a 4pc tax on rental income from commercial properties, however, was deferred for further deliberation.

The committee also turned down a contentious proposal that would have mandated all sales of Rs200,000 to be conducted through banking channels — a measure critics argued could burden small traders. Meanwhile, it approved an amendment excluding rental income from being adjusted against business losses.

The committee also registered strong opposition to the phased withdrawal of tax exemptions for the former Federally and Provincially Administered Tribal Areas (Fata and Pata).

Terming the move an “economic assassination” of small-scale........

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