The Senate Standing Committee on Finance and Revenue has approved a significant amendment, raising the allowable property purchase limit for non-filers from 130% to 500% of their declared assets. This means an individual with Rs. 10 million in declared assets can now legally acquire property worth up to Rs. 50 million.
Lawmakers backed the proposal, arguing it aligns property acquisition with practical investment scenarios. Finance Minister Muhammad Aurangzeb highlighted the move as part of broader tax reforms aimed at restoring public trust in the taxation system. He noted that Pakistan remains the only country where the category of “non-filers” formally exists, and emphasized ongoing efforts to widen the tax net.
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In parallel, changes to property transaction taxes have been introduced. Under Section 236C, the sale of property by active tax filers will now be taxed at a reduced rate of 1.5%, down from 3%. However, late filers and non-filers will continue to pay 6% and 12% respectively.
On the purchase side, tax rates remain consistent: 3% for active filers, 6% for late filers, and 12% for non-filers. These adjustments aim to incentivize tax compliance while maintaining pressure on those outside the formal tax system.
