The federal government is expected to include Section 114C of the Tax Laws (Amendment) Bill, 2024, in the Finance Bill 2025-26.
This section enforces restricting economic transactions by non-filers in the new fiscal year. Pertinently, the Federal Board of Revenue (FBR) has yet to update its online systems for enforcing Section 114C.
In February 2025, FBR Chairman Rashid Mahmood Langrial requested two months from the National Assembly Standing Committee on Finance to develop the necessary technology. The committee deferred implementation until a system demonstration is provided.
Former Minister of State for Finance Ali Pervaiz Malik at that time assured that despite the deferment, FBR would continue documenting wealthy individuals and non-filers. He said non-filers would no longer be treated merely as revenue sources without prosecution.
The FBR, which already has access to all immovable property transaction data, was instructed to finalise the system with support from NADRA and provincial authorities. It will exclude transactions by non-residents and public companies from the new restrictions.
The Revenue Division was also directed to clarify the term “cash and equivalent assets” and present a working demo of the updated system within two months.
Editorial & Legal Practice Group
Authored and reviewed by the corporate law and tax litigation practice group at Javid Law Associates. Our team comprises High Court advocates, corporate legal advisors, and authorized tax practitioners across Pakistan.
Advocates High Court & Tax Counsel
Jurisdiction: Pakistan