Tax on cash withdrawal is a form of advance taxation / Withholding Tax imposed in Pakistan. This mode of tax collection is also called the presumptive tax regime. This tax is levied on the withdrawal of cash from the bank accounts by the customer. The customer account will be debited to give effect of this tax. This tax helps in documentation of the economy. It helps reducing cash transactions. However, the customer can reduce his tax liability at the end of the year with the amount already paid as advance tax on cash withdrawal from banks.