Federal Government to Present 2025-26 Budget with Strict Measures Against Non-Filers

Islamabad:The **Federal Government** is set to present the **2025-26 budget** today, which will include significant measures to **expand the tax net** and impose **strict actions** against **non-filers**. According to sources, the budget will propose financial, commercial, and travel restrictions for non-filers.

**Key Proposals for Non-Filers**:

* **Ban on Foreign Travel**: A **proposal** has been made to **restrict non-filers** from traveling abroad.
* **Increased Withholding Tax**: The withholding tax rate for withdrawing **50,000 rupees** or more from banks will be **doubled** from **0.6% to 1.2%**.
* **Restrictions on Financial Transactions**: Non-filers will not be allowed to make **financial transactions**, purchase **property**, buy **vehicles**, or invest in **shares or mutual funds**.
* **Mobile Phones and Internet Devices**: Contrary to initial suggestions, **mobile phone SIMs** and **internet devices** will not be blocked for non-filers, though restrictions on property and vehicle purchases will remain in place.

The **National Taxation Authority** is working on eliminating the category of non-filers altogether, with an aim to **encourage all citizens to become filers**.

**Tougher Measures Against Tax Evasion**:

* The **Point of Sale (POS) system** will be strengthened to combat tax evasion. The **proposed penalties** for tax violations could increase **tenfold**, with fines potentially rising from **5 lakh** to **50 lakh rupees**.
* **Businesses** offering **undisclosed cash discounts** or **separate rates** will also be **included in the tax net**.

These actions will be implemented under **Section 114-B** of the **Income Tax Ordinance, 2001**, and will come into effect after the **approval of the budget**.

The upcoming budget aims to **reform the tax system**, tighten **tax compliance**, and enhance revenue collection, ensuring better financial stability for the country.