Karachi, October 19, 2025 – The Federal Board of Revenue (FBR) has confirmed that the Income Tax Ordinance, 2001 now places restrictions on bank cash withdrawals and other financial transactions for non-filers in Pakistan.
These new measures, introduced under the Finance Act, 2025, aim to encourage tax compliance and expand the country’s Active Taxpayers List (ATL).
According to official sources, the restrictions are outlined in the 15th Schedule of the Income Tax Ordinance, 2001, which limits various economic activities for non-filers. However, the tax authorities are currently awaiting an official gazette notification from the government to formally enforce these provisions.
Under Section 114C of the ordinance, several financial thresholds have been set for individuals who are not registered as active taxpayers. These include:
• Annual cash withdrawal limit: Non-filers can withdraw up to PKR 100 million per year across all bank accounts held in their name.
• Motor vehicle transactions: Applications for booking, purchase, or registration of vehicles are restricted if the invoice or import value exceeds PKR 7 million.
• Property transactions: Registration, attestation, or transfer of immovable property is restricted where the fair market value exceeds PKR 100 million.
• Investment in securities or mutual funds: Non-filers are limited to PKR 50 million per financial year for new investments in securities, mutual funds, or money market instruments.
The FBR stated that these measures are designed to curb undocumented financial activities and promote transparency in the tax system.