Islamabad:
In the federal budget of 2025-2026, unveiled on Tuesday, the government proposed a series of strict financial restrictions and an increase in tax rates targeting non-sequences in the context of efforts aimed at expanding the tax base and improving the documentation of the economy.
The Minister of Finance, Muhammad Aurangzeb, who presented the budget to the National Assembly, announced a proposal to increase the early tax on cash withdrawals by non-sequences from 0.6% to 1%. The Government also aims to eliminate the distinction existing between declarants and non-sequences in key financial matters.
The Minister of Finance said that only those who submit income declarations and wealth declarations will be authorized to initiate formal financial transactions. According to new proposals, non-selectors will be prohibited from purchasing vehicles or real estate, and they will not be authorized to invest in common-term securities or funds.
In a new tightening of financial regulations, a proposal has been advanced to prohibit non-selectors from opening bank accounts, a decision which should have a significant impact on undocumented financial activity.
The measures proposed, if implemented, would represent one of the most aggressive measures taken by the government to oblige citizens to join the official tax net and improve budget transparency.
