2025-26 Budget to Prohibit Non-Filers from Purchasing Property and Vehicles
In a major move to enforce tax compliance, the upcoming 2025-26 federal budget will bar non-filers from buying property and vehicles, according to sources familiar with the matter.
Insiders revealed that the government is also considering broader restrictions on financial transactions for non-filers. The Federal Board of Revenue (FBR) has confirmed that instead of relaxing the rules, the new budget will introduce even stricter measures against individuals not registered as tax filers.
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Efforts are underway to completely eliminate the “non-filer” category from the tax framework, a step aligned with the International Monetary Fund’s (IMF) recommendations to expand Pakistan’s tax base and boost revenue collection.
In related developments, the government has acknowledged that past trader-friendly tax schemes failed to deliver expected results. However, officials reported significant success following the recent hike in withholding tax on unregistered retailers. This policy change has led to a 51% surge in tax registrations among traders and wholesalers.
To reinforce compliance, authorities are leveraging third-party data to identify tax defaulters and implementing structural reforms. The FBR has rolled out its Compliance Risk Management System in major urban centers, including Islamabad, Karachi, and Lahore, extending the initiative to corporate tax units as well.
