Islamabad: The Federal Board of Revenue (FBR) is preparing to implement tougher restrictions on property purchases by non-filers, as part of broader efforts to expand the tax net under the proposed Finance Bill 2025–26.
During a recent meeting of the Senate Standing Committee on Finance, chaired by Senator Saleem Mandviwala, FBR officials revealed that a cap had initially been proposed to limit property purchases by non-filers to 130% of their declared assets. However, the committee has approved a revised proposal, raising the cap to 500% of declared assets for non-filers.
Senator Mohsin Aziz supported the increase, arguing that the original cap was too restrictive. He suggested that a non-filer with Rs10 million in declared assets should be permitted to purchase property worth up to Rs50 million. The committee agreed to the proposal, endorsing the 500% threshold.
The cap is intended to curb excessive property and vehicle acquisitions by individuals who do not file income tax returns, ensuring purchases are proportionate to the assets they have declared.
Finance Minister Muhammad Aurangzeb informed the committee that penalties on non-filers were already increased last year, and that the government remains committed to expanding documentation and bringing more individuals into the formal tax system.
In a related development, the FBR has also proposed increasing the tax-free daily cash withdrawal limit for non-filers from Rs50,000 to Rs75,000. Amounts above this threshold would be subject to a higher withholding tax of 0.8%, up from the previous rate of 0.6%. The measure aims to encourage formal banking practices and discourage undocumented financial transactions. These proposals form part of the broader fiscal strategy included in the upcoming budget, which places an emphasis on boosting revenues through better enforcement and compliance mechanisms.
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