Tougher Restrictions on Non-Filers: Property Purchase Tax May Rise to 500%

Islamabad – In a major move to tighten the noose around non-filers, the Senate Standing Committee on Finance has approved a proposal to increase the property purchase tax for non-filers from 130% to a staggering 500%.
The committee, chaired by Senator Saleem Mandviwalla, met to discuss the upcoming fiscal policies. During the session, Senator Shibli Faraz voiced concerns about income tax on low-income earners, stating that individuals earning between Rs. 600,000 to Rs. 1.2 million annually should not be taxed, especially when Rs. 100,000 monthly income now translates to only Rs. 42,000 in real value.
Federal Board of Revenue (FBR) Chairman Rashid Langrial announced that income generated by elite clubs will now be taxed. While Mandviwalla opposed taxing club incomes, Langrial defended the decision, arguing that such clubs serve only a small elite and not the general public.
Minister of State for Finance Bilal Azhar Kayani emphasized that taxes will be levied when an individual’s expenditures exceed declared income, specifically targeting privileged groups.
Committee members largely supported the proposal to tax elite clubs. FBR officials further revealed that restrictions on non-filers in the upcoming budget will include strict limits on property and vehicle purchases. A proposal has been made to impose a 130% tax threshold for non-filers buying property, which has now been recommended to increase to 500%.
Senator Mohsin Aziz argued that if a non-filer has Rs. 10 million in cash, they should not be allowed to purchase property worth more than Rs. 50 million, reinforcing the call for higher restrictions.
Finance Minister Muhammad Aurangzeb confirmed that penalties for non-filers were increased last year and reiterated the government’s commitment to bringing them into the tax net.
Additionally, the committee approved a proposal to impose taxes on online educational institutions and academies. FBR Chairman noted that some online academies earn up to Rs. 20 million monthly, and teachers generating online income will also be liable to pay taxes.