Islamabad, 19 May, 2025: Ban on Non-Filers is set to become a central feature of Pakistan’s fiscal strategy for 2025–26, with the government planning to prohibit non-tax filers from purchasing vehicles and real estate.
The policy, according to official sources, forms part of broader structural reforms aimed at expanding the country’s tax base.
Insiders familiar with the matter revealed that the Federal Board of Revenue (FBR) has finalized proposals that will further restrict financial liberties of non-filers.
Beyond barring property and car acquisitions, these individuals may also face limitations on other financial transactions as the government seeks to encourage tax registration and compliance.
READ MORE: FBR Chairman Announces Decision on Freezing Bank Accounts of Non-Filers
Tightened Rules Driven by IMF Commitments
The government’s evolving stance aligns with Ban on Non-Filers recommendations made by the International Monetary Fund (IMF), which has consistently urged Pakistan to dismantle the non-filer category altogether.
Authorities have confirmed that the 2025–26 budget will focus on removing leniencies for tax evaders, rather than providing relief.
The IMF was informed that trader-focused tax amnesty programs previously introduced fell short of revenue expectations.
In contrast, recent hikes in withholding tax on unregistered businesses have led to a 51% increase in new filer registrations among traders and wholesalers.
Enhanced Monitoring and Data-Driven Enforcement
As part of its reform agenda, the FBR has begun mining third-party data to identify chronic defaulters and improve enforcement strategies.
The newly launched Compliance Risk Management System is operational in key cities such as Islamabad, Karachi, and Lahore, and has also been extended to corporate tax departments to ensure broader oversight.
READ MORE: Government to Increase Profit Tax Rates for Non-Filers
Officials believe that the Ban on Non-Filers approach along with data integration and penalty-driven mechanisms will improve overall compliance and reduce revenue leakages.
The government is expected to announce the formal policy during the upcoming federal budget presentation.
