The government has introduced strict financial restrictions on non-filers in the 2025-26 budget. Finance Minister Muhammad Aurangzeb presented these measures in the National Assembly, aiming to increase tax compliance and discourage tax evasion. The new rules will limit financial activities for individuals who do not file tax returns.
Under the new policy, non-filers cannot buy vehicles or real estate. They are also barred from investing in securities and mutual funds. The government wants to ensure that only tax-compliant individuals can engage in major financial transactions. These steps will push more people to register as taxpayers.
Additionally, the advance tax on cash withdrawals from banks will increase from 0.6% to 1%. This change aims to encourage tax registration and broaden the tax base. The government also plans to eliminate the distinction between filers and non-filers, making tax compliance mandatory for financial activities.
Another major restriction is the ban on non-filers opening bank accounts. Only individuals who submit tax returns and wealth statements will be allowed to conduct financial transactions. This policy aims to strengthen the formal economy and increase tax revenue.
The government believes these measures will improve tax collection and reduce financial loopholes. Officials hope that strict enforcement will encourage more people to register as taxpayers and contribute to economic stability. These reforms signal a major shift in Pakistan’s tax policies.