Islamabad, May 3, 2025 – In a major crackdown on tax evasion, the federal government is preparing to enforce a complete ban on property transactions by non-filers of income tax returns.
This sweeping measure is set to take effect from July 1, 2025, pending the approval of new legislation by Parliament.
Sources within the Federal Board of Revenue (FBR) confirmed that the upcoming law will prohibit non-filers from buying or selling any form of immovable property, regardless of its market value. “If passed, the law will place an absolute restriction on property dealings by non-filers—there will be no value threshold or exceptions,” an FBR official revealed.
Previously, under the Income Tax (Amendment) Law, 2024, there were proposals to limit property purchases by non-filers, but these came with minimum value thresholds. In contrast, the new proposal removes such limits entirely, implementing a blanket ban that covers all types of immovable property.
The National Assembly Standing Committee on Finance and Revenue has already endorsed the key points of the Tax Laws (Amendment) Bill, 2024. Once included in the 2025-26 Finance Bill, these changes will formally outlaw several financial activities for non-filers, with property transactions among the most significant.
In addition to banning property dealings, non-filers will also be barred from registering motor vehicles above 800cc, making substantial investments in stocks or mutual funds, and opening new bank accounts. These restrictions are part of a larger effort to expand the formal tax base and encourage more citizens to file their tax returns.
To support the implementation of these rules, the FBR is upgrading its digital monitoring system. This includes the integration of banking data and tax records to help detect hidden income. The Standing Committee has requested a demonstration of the new system within two months to assess its readiness.
Recognizing the potential impact on middle- and lower-income citizens, the sub-committee has recommended some flexibility. For instance, first-time homebuyers and low-income individuals purchasing property for genuine residential needs may be considered for special exemptions, with the Federal Government retaining the authority to define value-based limits.
This policy is expected to generate heated debate during the upcoming budget session, but officials insist it is essential for improving tax compliance, meeting fiscal targets, and reducing dependency on indirect taxation. If successfully passed and enforced, it could become a cornerstone in Pakistan’s efforts to reform its tax regime and regulate property markets more effectively.