Islamabad (National Times) The FBR Member has categorically denied the claim of a 20.5 percent tax on cash sales transactions above Rs. 200,000, stating that such reports are incorrect and no such tax has been imposed.

The clarification comes amid confusion following the introduction of a new amendment in the Finance Bill 2025, which disallows 50 percent of the claimed expenditure related to any sale where payment exceeding Rs. 200,000 is received in cash or through any mode other than a banking channel or digital means, per single invoice.

Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial said that the government cannot withdraw the new legislation, disallowing 50 percent of expenditure attributable to cash sales exceeding Rs. 200,000 per transaction.