The Pakistan Budget for FY 2025–26 is set to introduce major reforms to tackle tax evasion and non-filers, official sources revealed.
The Federal Board of Revenue (FBR) has proposed raising penalties for tax fraud via Point of Sale (POS) systems from Rs. 500,000 to Rs. 5 million.
Read more: Government Proposes Petroleum Levy Hike in Next Budget
Beyond fines, strict legal actions are planned against businesses hiding transactions outside POS systems.
Non-filers may face harsh restrictions, including bans on buying vehicles, property, stock market investments, and large financial transactions. However, the government reportedly won’t block SIMs or internet services.
Travel restrictions are also proposed, barring non-filers from foreign trips except for religious pilgrimages.
Additionally, withholding tax on cash withdrawals over Rs. 50,000 may double from 0.6% to 1.2%.
