Budget 2025–26: Stricter measures proposed for non-filers

Islamabad: The federal government has proposed tough new restrictions on non-filers in the Budget 2025–26, aiming to strengthen tax compliance and broaden the tax base.

Presenting the budget in the National Assembly, Finance Minister Muhammad Aurangzeb proposed raising the withholding tax on cash withdrawals by non-filers from 0.6% to 1%.

Key proposals include eliminating the filer/non-filer distinction. Only those who submit income tax returns and wealth statements will be allowed to conduct major financial transactions.

Non-filers will be barred from purchasing vehicles or real estate, investing in securities or mutual funds, or opening bank accounts (under consideration).

These measures are part of the government’s broader efforts to enforce tax documentation and penalise tax evasion.