The federal government is set to introduce tough new measures in the upcoming 2025–26 budget targeting tax non-filers, as part of its commitments under the ongoing negotiations with the International Monetary Fund (IMF).
Sources indicate that individuals who do not file tax returns will be barred from purchasing property or vehicles and may also face restrictions on large-scale financial transactions. The move is part of a broader effort to eliminate the non-filer category altogether, aimed at enhancing tax compliance and increasing revenue collection in line with IMF requirements.
IMF Tightens Lending Conditions
The IMF has reportedly imposed stricter conditions under its loan program, citing external risks such as increasing U.S. tariffs and regional instability, particularly tensions with India. The Fund has called for prompt increases in electricity and gas tariffs, and a gradual withdrawal of tax exemptions granted to special economic zones.
Tax Reforms in Progress
The Federal Board of Revenue (FBR) is already implementing reforms to make the tax system more efficient and transparent. Key initiatives include:
- Phasing out the non-filer classification
- Utilizing third-party data to identify defaulters
- Launching the Compliance Risk Management System in major cities like Islamabad, Karachi, and Lahore, with future expansion to corporate tax units
Officials acknowledged during the IMF briefing that the recently introduced Tajir Dost Scheme aimed at bringing retailers into the tax fold had not met expectations. However, there has been a 51% rise in the number of tax filers among traders and wholesalers following an increase in withholding tax on unregistered shopkeepers.
As part of the budget discussions with the IMF, authorities have agreed to broaden the tax base and take stringent action against non-filers to meet fiscal targets and ensure long-term economic stability.
