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In Budget 2025-26, the government has announced that non-filers will be banned from financial transactions including buying property, vehicles, and opening bank accounts, to enforce tax compliance.
Federal Finance Minister Muhammad Aurangzeb said during his budget speech that only individuals who submit tax returns and wealth statements will be eligible for major financial activities.
Under the new policy, wealth statement submission is mandatory for transactions such as vehicle purchases and real estate deals.
Additionally, non-filers will no longer be allowed to invest in mutual funds or securities.
READ: Budget 2025-26: Govt reduces income tax rates for salaried workers
Opening a bank account will also be restricted for non-filers. The measure is part of a broader push to widen the tax base and increase national revenue.
The tax rate on cash withdrawals from ATM by non-filers is also being increased from 0.6 percent to 1 percent, further discouraging tax evasion through informal banking.
A new classification system is being introduced in the income tax framework to simplify the process and eliminate loopholes that previously benefited non-filers.
Minister Aurangzeb also announced that a 5 percent income tax will apply to annual pensions of Rs 10 million or more, targeting high-income retirees.
He highlighted economic progress, stating that remittances grew by 31 percent in 10 months, reaching $31.2 billion, with expectations of $38 billion by year-end.
The State Bank’s reserves have also improved by $2 billion. The government credited the Pakistani people for their resilience during tough reforms that brought positive economic results.
