The upcoming Pakistan Budget for the fiscal year 2025–26 is set to introduce major reforms aimed at curbing tax evasion and penalizing non-filers, according to official sources.

The Federal Board of Revenue (FBR) has proposed a sharp escalation in penalties for tax fraud discovered through Point of Sale (POS) systems. Under the proposed changes, the fine for violations will increase tenfold — from Rs. 500,000 to Rs. 5 million. In addition to steeper fines, authorities plan to initiate strict legal action against businesses that operate off the record or conduct undisclosed transactions outside the POS network.

For non-filers — individuals who have failed to register with the tax system — the budget will introduce strict financial restrictions. These include bans on purchasing vehicles, real estate, stock market investments, mutual funds, and restrictions on conducting large-scale financial transactions.

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While earlier discussions hinted at the suspension of mobile SIMs and internet devices for non-filers, FBR sources have confirmed that this measure will not be implemented.

Further proposals include travel restrictions, preventing non-filers from traveling abroad, with exceptions only for religious pilgrimages such as Hajj and Umrah. Additionally, the withholding tax on cash withdrawals exceeding Rs. 50,000 is set to double from 0.6% to 1.2%, as part of a broader push to increase documentation and transparency in the financial system.