Non-filers to be barred from purchasing vehicles

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ISLAMABAD:

In the Federal Budget 2025-26 unveiled on Tuesday, the government has proposed a series of stringent financial restrictions and increased tax rates targeting non-filers as part of efforts to broaden the tax base and enhance documentation of the economy.

Finance Minister Muhammad Aurangzeb announced a proposal to increase the advance tax on cash withdrawals by non-filers from 0.6% to 1%. The government also aims to eliminate the existing distinction between filers and non-filers in key financial matters. The finance minister said that only those who submit tax returns and wealth statements will be allowed to engage in formal financial transactions. As per the new proposals, non-filers will be barred from purchasing vehicles or immovable property, and they will not be permitted to invest in securities or mutual funds.

In a further tightening of financial regulations, a proposal has been put forward to prohibit non-filers from opening bank accounts, a move expected to significantly impact undocumented financial activity.