ISLAMABAD, Jan 23: The Central Board of Revenue (CBR) has claimed to have raised Rs1.058 billion from the levy of 0.1 per cent withholding tax on cash withdrawals during the first half of the current financial year.

A senior CBR official told Dawn on Monday that the amount raised from the levy had helped in the over-all growth of collections from income tax during the period under review.

The CBR has projected Rs5 billion in 2005-06 budget to be generated through this levy from the customers of banks on cash withdrawals in excess of Rs25,000.

The collection figures during the first half of this year show that it would be a very tough task for the tax officials to meet the target set under the head. The CBR would have to collect Rs3.942 billion from the levy during the second half (Jan-June) to meet the target of the current fiscal year.

According to informed sources in the finance ministry, the International Monetary Fund (IMF) has already asked the CBR to review the levy of 0.1 per cent withholding tax on cash withdrawals from the banks.

The tax official said the amount generated through the levy was not small, as it would discourage the subsequent withdrawals. Although the levy is adjustable but the people in the informal trade sector would not apply for its adjustment, which would ultimately help the tax officials in achieving the target.