ISLAMABAD – The federal government has reportedly planned to tighten the noose tax evaders and non-filers in the upcoming budget for fiscal year 2025-26 to be presented today.
Reports suggest that preparations are underway to increase penalties for tax evasion at point-of-sale systems by ten times.
A proposal has been made to raise the penalty for tax evasion through point-of-sale machines from Rs500,000 to Rs5 million. Those who secretly maintain separate cash rates in the point-of-sale system will also be held accountable.
Under Section 114B of the Income Tax Ordinance 2001, actions will be taken against non-filers.
Reports said mobile phone SIMs and internet devices of non-filers will not be blocked, but restrictions on the purchase of vehicles and property by non-filers will remain in place.
Non-filers will not be allowed to make financial transactions and will be prohibited from investing in shares or mutual funds. Non-filers will not be allowed to travel abroad except for religious pilgrimages.
The government is also making efforts to eliminate the “non-filer” category from the tax system.
There is also a proposal to double the withholding tax on cash withdrawals from banks by non-filers. For example, instead of the current 0.6 percent, a 1.2 percent tax will be imposed on withdrawals of Rs50,000.
