Islamabad:
In the federal budget 2025-26, which was revealed on Tuesday, the government has proposed a number of strict financial restrictions and increased tax rates targeting non-file as part of the efforts to expand the tax base and improve the documentation of the economy.
Finance Minister Muhammad Aurangzeb announced a proposal to increase the advance of cash withdrawals from non-file from 0.6% to 1%. The government also aims to eliminate the existing distinction between files and non-file in key financial affairs. The finance minister said that only those who submit tax returns and wealth statements will be allowed to participate in formal economic transactions. According to the new proposals, non-filers will be excluded from buying vehicles or real estate and they will not be allowed to invest in securities or mutual funds.
In a further tightening of financial regulations, a proposal has been made to prohibit non-filers from opening bank accounts, a step that is expected to significantly affect economic activity.
