Budget 2025: Noose to be further tightened for non-filers
ISLAMABAD: The government is mulling over a series of tough measures targeting non-filers, including a proposal to bar them from traveling abroad in the new budget 2025-26 to be tabled today.
According to sources, a key recommendation is to double the withholding tax on cash withdrawals for non-filers, from the current 0.6 per cent to 1.2 per cent on withdrawals above Rs50,000.
However, there will be no move to block mobile phone SIMs or internet devices of non-filers in the budget 2025, sources added.
The existing ban on the purchase of vehicles and property by non-filers is expected to remain in place. Non-filers may also be restricted from carrying out financial transactions, buying shares, or investing in mutual funds.
Officials are also working on eliminating the “non-filer” category entirely from the tax system under new reforms, sources said.
Meanwhile, strict action is being planned against tax evasion through Point of Sale (POS) systems. The proposed penalty for POS-related tax fraud is set to increase tenfold — from Rs500,000 to Rs5 million.
There will also be action against retailers who secretly apply different rates for cash transactions through POS machines.
Legal amendments under Section 114B of the Income Tax Ordinance 2001 are also being prepared to enable action against non-filers, insiders added.
These measures are likely to be part of the upcoming federal budget and reflect the government’s push to widen the tax net and tighten control over undocumented economic activity.