ISLAMABAD: The federal budget for fiscal year 2025–26 is set to be presented today (Tuesday) with major proposals aimed at expanding the tax net and tightening restrictions on non-filers.
According to sources, the government is considering a ban on foreign travel for non-filers. Additionally, the withholding tax on cash withdrawals exceeding Rs 50,000 from banks may be increased from 0.6% to 1.2%.
While mobile phone SIMs and internet devices of non-filers are not expected to be blocked, existing bans on vehicle and property purchases will remain. Non-filers will also be barred from engaging in financial transactions, purchasing shares, or investing in mutual funds.
Efforts are underway to completely eliminate the “non-filer” category, encouraging all citizens to become active tax filers.
The budget also includes proposals to crack down on tax evasion via Point-of-Sale (POS) systems. Penalties may be increased tenfold from Rs. 500,000 to Rs. 5 million for violators. Businesses offering unreported discounts on cash transactions will also be brought into the tax net.
These steps will be enforced under Section 114B of the Income Tax Ordinance 2001, following the approval of the budget.
