Islamabad: In a sweeping effort to clamp down on undocumented wealth and expand the tax base, the Federal Board of Revenue (FBR) has proposed stringent new restrictions on non-filers in the Finance Bill 2025–26.
Under the proposed reforms, individuals and entities who have not filed income tax returns for the previous year—or cannot justify their purchasing power through formally declared resources—will be barred from conducting major economic transactions. These include the purchase or registration of immovable property, vehicles, and securities.
The key legal provision enabling this crackdown is Section 114C of the Income Tax Ordinance, 2001. It outlines that only eligible taxpayers—those who have submitted their tax returns and can verify their declared income—will be allowed to carry out such transactions.
Additionally, the FBR has proposed Section 175AA, which would empower the tax authority to share information of “high-risk persons” with scheduled banks. This includes income history, declared bank accounts, wealth statements, and other financial disclosures submitted to the FBR.
Using algorithms and data-matching tools, the FBR aims to flag inconsistencies and require banks to report individuals whose financial activity exceeds what is declared in tax filings. Scheduled banks will be required to cooperate, ensuring account-level scrutiny of flagged individuals.
Another proposed section, 14AC, grants the FBR commissioner authority to bar the operation of bank accounts belonging to unregistered or non-compliant persons.
Furthermore, manufacturers, vehicle registration authorities, and real estate registrars will not be allowed to accept or process any purchase or transfer applications above a government-notified value from “ineligible persons.” This includes not only immovable property but also cars, stocks, mutual funds, and even the opening of new bank accounts—except for basic Asaan or pensioner accounts.
The new rules will take effect once the federal government officially notifies specific valuation thresholds and categories of ineligible persons.
These measures represent one of the most aggressive moves yet by the FBR to enforce compliance and reduce Pakistan’s shadow economy. If passed, they will significantly impact non-filers’ access to high-value assets and financial services.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
