The National Assembly Standing Committee on Finance and Revenue on Wednesday approved the report on the revised Tax Laws (Amendment) Bill, 2024, which proposes strict curbs on the financial activities of non-filers starting July 1, under the upcoming Finance Bill 2025-26.
Key changes in the revised bill include the removal of the valuation threshold for immovable properties owned by non-filers, paving the way for broader enforcement measures.
The committee reviewed and adopted the subcommittee’s report, which incorporated key amendments proposed by the Federal Board of Revenue (FBR).
Moreover, the bill is now set to be incorporated into the Finance Bill 2025-26, where it will undergo a clause-by-clause review during the budget approval process.
Committee Chairman Syed Naveed Qamar confirmed that the bill’s approval will lead to its detailed examination as part of the 2025-26 budget deliberations.
One of the central provisions of the bill, Section 114C, which deals with restrictions on economic transactions by non-filers, had previously been deferred.
The committee required the FBR to first demonstrate technological readiness through updates to its digital infrastructure.
However, the bill included measures to identify income and sales under-reporting by matching taxpayer data with banking records.
To facilitate this, the FBR has been directed to finalize and showcase its updated online platform and mobile application within two months.
The committee also recommended a key change in Section 114C, replacing the word “Board” with “Federal Government,” allowing the government to set value thresholds for financial transactions.
The FBR has already submitted aggregated data on property transactions for the fiscal year 2023-24 to support this assessment.
Under the bill, non-filers will face a range of prohibitions, including:
Buying, booking, or registering vehicles above 800cc
Purchasing property beyond certain limits
Making stock market investments above set thresholds
Opening new bank accounts
Conducting a limited number of banking transactions
However, non-filers will still be allowed to buy motorcycles, rickshaws, and tractors.
Furthermore, the bill bars entities such as brokers, mutual fund managers, and other financial service providers from conducting transactions with non-filers, including the sale of securities or mutual fund units.
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