Govt to include more restrictions on non-filers in next Finance Bill

The federal government is expected to incorporate the Tax Laws (Amendment) Bill, 2024, into the next Finance Bill (2025-26), imposing more restrictions on economic transactions for non-filers, Business Recorder reported.  

However, the Federal Board of Revenue (FBR) has not yet implemented the necessary technological changes to its online systems to enforce the new Section 114C of the bill, which addresses these restrictions.

FBR Chairman Rashid Mahmood Langrial had earlier requested the National Assembly Standing Committee on Finance for a two-month period to develop the required technological tools to implement Section 114C. In February 2025, the committee deferred the section’s implementation until the FBR could update its systems. 

During the session, former Minister of State for Finance, Ali Pervaiz Malik, emphasized that the deferment would not halt the FBR’s ongoing efforts to document wealthy individuals and non-filers of income tax returns. He stressed that non-filers had long been used as a revenue source without facing prosecution, a situation he said could not continue under the country’s tax system.

The FBR has access to all data related to immovable property transactions and will continue to take action against non-filers. The committee has recommended that the FBR demonstrate its updated online system before further deliberation on Section 114C. The FBR has agreed to provide this demonstration and may reconsider the section as part of the upcoming budget process in June 2025.

In the meantime, the FBR is focusing on ensuring that the system changes are user-friendly and mitigate any unintended consequences. The committee also instructed the National Database and Registration Authority (NADRA), provincial excise departments, and land authorities to assist the FBR in developing the new system. 

FBR Chairman Langrial clarified that transactions involving non-resident individuals or public companies would not be subject to the restrictions under the Tax Laws (Amendment) Bill. He also urged the Revenue Division to finalize the online system and present a demonstration to the committee within two months.