New Restrictions on Transactions of Non-Filers from July 1, 2025

Staff Report

The government is working to introduce restrictions on transactions of non-filers from July 1, 2025, to document the economy.

The National Assembly’s Standing Committee on Finance has recently adopted the Tax Laws (Amendment) Bill, 2024, to make part of the Finance Bill 2025-26. This will be a big shift in the country’s tax enforcement strategy to take action against tax evaders.

What’s Changing?

The upcoming legislation is going to make life significantly harder for non-filers and individuals who have not been submitting their tax returns.

The proposed law is going to remove earlier thresholds on property valuations for non-filers. This means stricter scrutiny regardless of transaction size.

Key restrictions proposed:

• There will be no purchase or registration of vehicles over 800cc
• The government will impose a ban on acquiring property beyond a set limit
• They will not be able to open bank accounts
• There will be limited bank transactions
• Non-filers will be barred from purchasing shares, mutual funds, and debt securities

However, the government will allow non-filers to buy motorcycles, rickshaws, and tractors. They are being treated as essential for lower-income and rural citizens.

Why It Matters

The government is working on this bill to bring non-filers into the tax net by restricting them from economic transactions. If you are not submitting tax returns, then the government will stop you from buying property, opening a bank account, or investing. So, you’re forced to file tax returns—or be locked out.

The law also gives power to the Federal Government and FBR to set transaction limits, aimed at protecting lower- and middle-income buyers, especially those who are first-time homeowners.

The bill is a part of a digital shift to tap into banking data to detect under-reported income, matching it with filed returns. The government is also developing a new mobile app and an upgraded system to be tabled before the committee in two months. The bill will go under parliamentary scrutiny during the budget process for 2025-26 as the government moves to enforcement.FBR and FMU To Combat Illicit Finance