Islamabad, 10 June 2025: The upcoming federal budget is poised to introduce tougher restrictions on non-filers in 2025, as the government moves to intensify its efforts against tax evasion.
According to official sources, a stringent policy package is being finalized to bring non-compliant individuals under greater regulatory pressure.
A key feature of the proposed reforms is a ban on international travel for non-filers, with exceptions only for religious pilgrimages such as Hajj or Umrah.
This travel restriction is intended to pressure those outside the formal tax net into filing their returns and becoming part of the documented economy.
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Meanwhile, existing prohibitions on the purchase of vehicles and immovable property by non-filers will continue, underscoring the government’s resolve to deny tax evaders access to high-value assets.
As part of the crackdown on non-filers in 2025, access to formal financial channels is also being curtailed. Individuals who remain outside the tax system may be barred from making financial transactions, including the purchase of shares and investments in mutual funds.
In addition, a proposal is under review to double the withholding tax on bank cash withdrawals exceeding Rs. 50,000, raising the rate from 0.6% to 1.2%, sources revealed. The measure is aimed at making financial operations increasingly difficult for those who continue to evade registration.
However, authorities have clarified that mobile phone SIMs and internet devices will not be blocked as part of these reforms, allowing non-filers to retain basic connectivity services.
In a related move, the government is also targeting undocumented retail sales. Businesses that conceal actual sales figures through Point-of-Sale (POS) systems could face a tenfold increase in penalties.
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The current fine of Rs. 500,000 could be raised to Rs. 5 million, particularly for those caught running dual pricing systems or secret cash registers to evade taxes. This part of the reform is expected to reinforce digital monitoring and discourage underreporting at the retail level.
As the budget for FY2025–26 nears finalization, these sweeping proposals reflect a broader policy direction aimed at integrating non-filers in 2025 into the tax structure through coercive measures if voluntary compliance fails.
