Under the Finance Bill 2025, the government of Pakistan has proposed making asset declaration mandatory for purchasing cars and other high-value assets.
If approved, the law will come into force on July 1, 2025 — a move expected to send ripples across all sectors of the national economy.
The new legislation redefines financial eligibility and could restrict both non-filers and regular filers from major transactions if their declared assets do not match their expenditures.
The bill introduces a tighter definition of an “Eligible Person” — requiring individuals not only to have filed income tax returns but also to prove sufficient declared wealth to justify transactions like vehicle purchases, property deals, or opening standard bank accounts.
“Just filing a tax return is no longer enough,” warned tax experts. “Even compliant taxpayers could now face restrictions if their declared wealth doesn’t support their spending.”
Key Restrictions Under the Proposed Law:
The law outlines severe transactional bans for anyone failing to meet the new criteria:
No purchase, booking, or registration of cars for ineligible individuals.
Property transactions above a government threshold will be blocked.
Investments in securities such as mutual funds and bonds will be restricted.
Banks will deny account openings (except Asaan or pension accounts) and cash withdrawals beyond set limits.
Exemptions:
There are a few reliefs — rickshaws, motorcycles, tractors, small pickups (under 800cc), and certain trucks and buses remain exempt. Public companies and some non-resident individuals may also be allowed limited transactions.
Economic Impact and Public Concerns:
The sweeping financial restrictions have sparked widespread concern among economists and taxpayers. Former FBR official Rehmatullah Khan Wazir warned that the law could paralyze economic activity, prompting people to channel funds abroad or use informal means like hawala and hundi.
Critics also question why past transactions made with undeclared income in FY 2023-24 were not investigated. They argue that Pakistan is shifting from post-transaction scrutiny — a global norm — to pre-transaction control, potentially discouraging investment and damaging public trust.
Conclusion:
While the government claims the measure aims to boost documentation and increase tax compliance, experts warn it could stifle legitimate financial activity and push capital into the shadows.
With July 1 approaching, the definition of an “Eligible Person” is set to become a powerful financial filter — and possibly a new economic fault line in Pakistan.