Non-filers to be barred from opening bank accounts, purchasing property, vehicles, and investing in securities

In the Federal Budget 2025-26, the federal government introduced a series of stringent measures targeting non-filers as part of its ongoing efforts to broaden the tax base and formalise the economy. 

Finance Minister Muhammad Aurangzeb announced plans to raise the advance tax on cash withdrawals by non-filers from 0.6% to 1%, while also aiming to eliminate the distinction between filers and non-filers in key financial matters.

A key proposal in the budget is that non-filers will be barred from engaging in major financial transactions, including purchasing vehicles and immovable property. 

Furthermore, they will not be allowed to invest in securities or mutual funds, marking a significant move to restrict non-compliant individuals from participating in these areas of the formal economy.

The government also plans to prohibit non-filers from opening bank accounts, a measure designed to curtail undocumented financial activity. 

These proposals are part of a broader strategy to enforce tax compliance and increase the country’s formal economy, as the government works to strengthen its tax system and encourage greater economic documentation.