NA body adopts report on Tax Laws (Amendment) Bill: Restrictions on transactions of non-filers from July 1
ISLAMABAD: The National Assembly Standing Committee on Finance and Revenue, Wednesday, adopted the report on Tax Laws (Amendment) Bill, 2024 to impose restriction on economic transactions of non-filers through Finance Bill 2025-26 from next fiscal year.
The threshold proposed for valuation of immovable properties of non-filers has been abolished under the revised Tax Laws (Amendment) Bill, 2024.
The revised Tax Laws (Amendment) Bill, 2024 was presented before the committee here on Thursday.
Tax laws bill may be part of FY26 Finance Bill: Non-filers to face curbs on economic deals
From July 1, 2025, the government will impose strict restriction on economic transactions of non-filers through the next Finance Bill.
During the committee proceedings, the committee adopted the report of the sub-committee and clear the amendments made by the Federal Board of Revenue (FBR) in the Tax Laws (Amendment) Bill, 2024.
On the conclusion of the meeting, Syed Naveed Qamar, chairman of the committee told Business Recorder that now the Bill would be made part of the Finance Bill 2025-26 and it would be debated clause by clause during review of the finance bill (2025-26). The adoption of the report of the sub-committee would result in detailed review of the bill during the budget finalisation exercise for 2025-26, he added.
During the last meeting, the committee had deferred new Section 114C (restriction on economic transactions of non-filers) of Tax Laws (Amendment) Bill, 2024 till the FBR demonstrates necessary technological changes in its online systems.
The bill will introduce measures to detect and take corrective measures against under-declarations of income/sales by fetching taxpayers banking system data and match with the declaration filed with the FBR.
The chair emphasised that the Revenue Division should revisit Clause (5)(a) to provide greater clarity on the term 'cash and equivalent assets.' He also directed the Revenue Division to finalize the updated online system/mobile app and present a demonstration to the committee within two months.
Sub-committee recommended in section 114C, in clause (1) (b) the word 'Board' be replaced with the word 'Federal Government'. The Federal Government may determine the value threshold for transactions affected by this restriction to ensure that property transactions conducted by common citizens and the lower- and middle-income class—particularly first-time property buyers or those purchasing their primary residential property—are not impacted.
As per the direction of the Sub-Committee, the FBR has shared aggregate data on property transaction values for FY 2023-24.
According to 'Tax Laws (Amendment) Bill, 2024', non-filers will be prohibited from purchasing, booking, registration of vehicles over 800cc, acquiring property beyond a specified limit, and making stock purchases beyond a certain threshold.
Additionally, non-filers will not be able to open bank accounts, and there will be restrictions on the number of banking transactions they can conduct. However, non-filers will still be allowed to purchase motorcycles, rickshaws, and tractors.
The purpose of the bill also imposed restriction on economic transaction by certain persons such as 'any person, authorized to sell securities including debt securities or units of mutual funds including a person authored to open and maintain account or clear such transactions, shall not sell, open an account or clear sale of securities, mutual funds, to an ineligible person being an individual or an association of persons.'
Copyright Business Recorder, 2025
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