Islamabad, May 1, 2025 – The Government of Pakistan is gearing up to introduce strict restrictions on financial and economic activities of non-filers starting from the new fiscal year 2025–26.
These measures are part of a broader strategy to enhance tax compliance and widen the tax base.
The National Assembly Standing Committee on Finance and Revenue has approved the report on the Tax Laws (Amendment) Bill, 2024, which lays the groundwork for these upcoming restrictions. The proposed amendments, once included in the Finance Bill 2025-26, will legally bar non-filers of income tax returns from carrying out several key financial transactions.
One of the major changes in the revised bill is the removal of the valuation threshold for immovable properties held by non-filers. This means that from July 1, 2025, non-filers will face blanket restrictions on acquiring property, registering vehicles over 800cc, and purchasing stocks beyond certain limits, regardless of the property’s value.
These restrictions are intended to target tax evasion and under-reporting. The Federal Board of Revenue (FBR) will also use enhanced technology to detect under-declared income and match data from bank accounts with tax returns. This digital system is being upgraded to support these new rules, and the committee has asked for a demo within two months to ensure readiness.
Under the new rules, non-filers will not be allowed to open bank accounts or conduct high-volume transactions. However, basic transactions such as buying motorcycles, rickshaws, and tractors will remain permissible. The bill also restricts the sale of securities, mutual funds, or debt instruments to non-filers, ensuring tighter control over financial markets.
To avoid impacting common citizens and low-income individuals, the sub-committee recommended allowing flexibility for first-time homebuyers and middle-class property buyers. It suggested that the Federal Government—not just the FBR—should define the transaction value limits for these restrictions.
This move is seen as a significant step toward increasing the number of active taxpayers and discouraging financial activity outside the formal tax net. With growing fiscal pressure and ongoing negotiations with international lenders, improving tax collection and reducing dependence on indirect taxes remains a top priority for the government.
The proposed measures are expected to spark debate in the National Assembly during the upcoming budget sessions.