The federal government is set to present the budget for 2025–26 today. This time, strict actions are expected against tax non-filers. Sources say a foreign travel ban for non-filers is under consideration. At the same time, the withholding tax on cash withdrawals above Rs 50,000 may double from 0.6% to 1.2%.
Moreover, while mobile SIMs and internet devices of non-filers may not be blocked, old bans will continue. Non-filers will still be unable to buy vehicles or properties. They will also be restricted from stock trading, investing in mutual funds, or making key financial transactions.
In addition, the government plans to completely remove the “non-filer” status. This means every citizen must become an active tax filer. These efforts aim to widen the tax net and reduce tax evasion. If approved, these changes will be made through Section 114B of the Income Tax Ordinance 2001.
The budget also targets tax fraud through Point-of-Sale (POS) systems. Penalties for offenders could rise sharply—from Rs 500,000 to Rs 5 million. Furthermore, businesses giving hidden discounts on cash sales will now be brought under the tax radar.
Overall, the government seems serious about tax reforms. Through strict measures and higher penalties, it hopes to improve revenue collection. These proposals, if passed, will mark a major step toward a more responsible tax system.