Islamabad, Apr 29, 2025: The federal government is set to incorporate Section 114C of the Tax Laws (Amendment) Bill, 2024, into the Finance Bill for the fiscal year 2025-26.
This provision mandates restrictions on economic transactions by individuals who fail to file tax returns in the upcoming fiscal period.
Notably, the Federal Board of Revenue (FBR) has yet to update its online infrastructure to enforce the provisions of Section 114C.
In February 2025, FBR Chairman Rashid Mahmood Langrial sought an additional two months from the National Assembly Standing Committee on Finance to develop the necessary technological framework. The committee agreed to postpone the implementation until the updated system could be demonstrated.
At that time, former Minister of State for Finance Ali Pervaiz Malik reassured that, despite the delay, FBR would continue its efforts to monitor the wealth of individuals and identify non-filers.
He emphasized that non-filers would no longer be treated as mere revenue sources but would face legal action as well.
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The FBR, which already possesses data on all real estate transactions, was instructed to finalize the system with assistance from NADRA and provincial authorities.
The new regulations will not apply to transactions involving non-residents or public companies.
Additionally, the Revenue Division was tasked with clarifying the definition of “cash and equivalent assets” and presenting a working prototype of the updated system within two months.
