Islamabad: The federal government has relaxed restrictions on non-filers purchasing high-value assets, aiming to improve compliance and stimulate economic activity, announced by Finance Minister Muhammad Aurangzeb
Initially, the government proposed a sweeping ban on individuals without a declared income supporting major transactions such as buying homes, cars, or making large deposits.
However, under new directives, these restrictions now apply only to luxury items: cars above 1,600cc, residential properties exceeding one kanal in major cities and two kanals elsewhere, cash deposits over Rs. 100 million annually, and stock investments over Rs. 50 million per year.
The move effectively reduces the scope of the enforcement drive, reflecting concerns over the capacity of the Federal Board of Revenue (FBR) to implement the original plan. Aurangzeb stated that the adjustments were made on the Prime Minister’s instructions, citing the FBR’s limited enforcement capabilities.
In addition to easing restrictive measures, the government unveiled a series of new tax measures aimed at raising Rs. 36 billion. These include increasing the tax on the debt portion of mutual funds for companies from 25% to 29%, raising the tax on income from government securities from 15% to 20%, and imposing a Rs. 10 daily excise duty on day-old chicks, expected to generate Rs. 15 billion annually.
Other notable announcements involve tax exemptions and reductions: no withholding tax on property sales held for over 15 years, tax exemptions on post-retirement benefits such as gratuity, and a reduction in income tax for individuals earning Rs. 600,000–1.2 million annually from 2.5% to 1%. Additionally, pensioners over 75 years old will be fully exempt from pension taxes.
The government also announced the launch of a 20-year low-income housing loan scheme to promote affordable housing.
Regarding enforcement against tax fraud, Aurangzeb clarified that arrests for cases under Rs. 50 million will require a court warrant and will only occur after three notices, in cases of flight risk or record tampering. All arrests must be approved by a three-member FBR committee and presented before a special judge within 24 hours.
These measures signal a strategic shift in Pakistan’s fiscal policy, balancing revenue generation with pragmatic enforcement and economic growth considerations.
