Govt Plans Strict Tax Measures Against Non-Filers in Upcoming Finance Bill

Islamabad: The federal government is likely to include the Tax Laws (Amendment) Bill, 2024 in the upcoming Finance Bill 2025-26, introducing stricter measures against non-filers of income tax returns, according to Business Recorder. The aim is to expand the tax base and curb undocumented, high-value transactions.

Central to this amendment is Section 114C, which will restrict non-filers from engaging in key economic activities. However, the Federal Board of Revenue (FBR) is still working on the technological systems needed to enforce these provisions. FBR Chairman Rashid Mahmood Langrial had earlier requested two months from the National Assembly Standing Committee on Finance to complete the necessary upgrades.

In February 2025, the committee agreed to delay implementation until the FBR could demonstrate a user-friendly, functional system. Ali Pervaiz Malik, former Minister of State for Finance, stressed that this delay wouldn’t weaken efforts to hold non-filers accountable or document untaxed wealth.

Officials confirmed the FBR already possesses detailed data on property transactions and intends to use this to pursue non-compliant individuals. A live demo of the new system will be required before the bill is further considered.

Meanwhile, the FBR is collaborating with NADRA, provincial excise departments, and land authorities to ensure seamless integration of the new tax controls. Chairman Langrial also clarified that Section 114C will not apply to public companies or non-resident individuals. He urged the Revenue Division to finalize the system ahead of the Finance Bill’s presentation in June 2025.