ISLAMABAD: The government on Tuesday increased the tax ratio on cash withdrawals by the non-filers in the budget for FY2025-26.
In the budget for FY 2025-26, the tax ratio on cash withdrawals by non-filers has been increased from 0.6pc to 1pc.
Meanwhile, non-filers will no longer be allowed to open bank accounts.
In addition, they will be barred from investing in securities and mutual funds. The move is aimed at curbing undocumented cash transactions and encouraging tax compliance.
According to the budget document, non-filers will also be prohibited from purchasing vehicles or immovable property.
To expand the tax base and enhance enforcement, the government has decided to engage the external auditors.
The proposals seek to eliminate the distinction between filers and non-filers altogether.
Only individuals who submit tax returns and wealth statements will be allowed to carry out financial transactions.
Earlier in the day, Finance Minister Muhammad Aurangzeb presented the Rs17,573 billion budget for the fiscal year 2025-26 with the total outlay of Rs17,573 billion.
He thanked Prime Minister Shehbaz Sharif, Bilawal Bhutto Zardari, Khalid Maqbool Siddiqui and others for their support in the budget.
He said that the IMF has shown trust in the reforms undertaken by the incumbent government and those claiming about the minibudget have turned silent now.
