The federal government plans to include Section 114C of the Tax Laws (Amendment) Bill, 2024, in the upcoming Finance Bill for 2025-26. This new section will impose restrictions on economic transactions by non-filers starting in the new fiscal year. However, the Federal Board of Revenue (FBR) has not yet updated its online systems to enforce Section 114C. In February 2025, FBR Chairman Rashid Mahmood Langrial requested an additional two months from the National Assembly Standing Committee on Finance to develop the required technological infrastructure. As a result, the committee postponed the implementation of the section until a system demonstration is provided.
At that time, Former Minister of State for Finance, Ali Pervaiz Malik, assured the committee that despite the delay, the FBR would continue its efforts to document wealthy individuals and non-filers. He emphasized that non-filers would no longer be treated simply as revenue sources, but would also face legal action.
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The FBR, which already has access to data on immovable property transactions, has been instructed to finalize the new system with the help of NADRA and provincial authorities. Notably, transactions involving non-residents and public companies will be excluded from the new restrictions.
The Revenue Division was also tasked with clarifying the definition of “cash and equivalent assets” and presenting a functional demonstration of the updated system within two months.
