Govt to Crush Non-Filers Even Harder in Budget

The upcoming Pakistan Budget for fiscal year 2025–26 is expected to introduce sweeping reforms targeting tax evasion and non-filers, official sources told ProPakistani. The Federal Board of Revenue (FBR) has proposed significant measures, including a tenfold increase in penalties for tax fraud identified through Point of Sale (POS) systems. Under the new framework, the fine for such violations would rise from Rs. 500,000 to Rs. 5 million. In addition to higher fines, authorities plan to launch strict legal action against businesses operating off the books or maintaining undisclosed transactions outside the POS framework. For non-filers—individuals who have not registered with the tax system—the budget is expected to bring a series of tough financial restrictions. These include bans on purchasing vehicles and real estate, prohibitions on investing in the stock market and mutual funds, and limits on conducting large financial transactions. Contrary to earlier discussions, however, the government has decided not to block mobile SIM cards or internet devices of non-filers, according to FBR sources. The proposed reforms also include travel restrictions. Non-filers will be barred from traveling abroad, with the exception of religious pilgrimages such as Hajj and Umrah. Another key proposal involves an increase in the withholding tax on cash withdrawals exceeding Rs. 50,000. The rate will double from 0.6% to 1.2%.