WHT reduced on foreign payments via debt, credit cards

Major Relief! Govt Announces 90% Cut in Withholding Tax on Overseas Card Transactions

The government has proposed a major reduction in withholding tax on international credit and debit card transactions as part of efforts to promote the use of formal banking channels and improve financial documentation in the economy. Finance Minister Muhammad Aurangzeb said that under the federal budget 2026–27, the withholding tax on overseas transactions made through bank-issued cards is proposed to be reduced from 5% to 0.5%. This represents …

WHT reduced on foreign payments via debt, credit cards

KARACHI: In a major move to promote the digital transitions, the federal government has announced to reduce the withholding tax (WHT) rate from 5 percent to 0.5 percent on foreign payments made through credit or debit cards. According to 2026-27 budget speech, Finance Minister Muhammad Aurangzeb announced the massive reduction in the withholding tax on credit or debit cards transactions aimed to promote the use of credit and debit cards and enco…