Government to Impose International Travel Ban on Tax Non-Filers

The government is considering imposing further restrictions on non-filers, including a proposed ban on international travel aimed at increasing tax compliance.

As per the sources, the withholding tax on cash withdrawals of Rs 50,000 or more by non-filers may be doubled—from the current 0.6% to 1.2%.

While mobile phone SIMs and internet devices of non-filers will not be blocked, the existing ban on purchasing vehicles and property will continue. Additionally, non-filers will be barred from conducting financial transactions.

Sources further disclosed that non-filers will also be prohibited from purchasing shares or investing in mutual funds. Work is underway to completely eliminate the “non-filer” category from the tax system.

In a bid to curb tax evasion via Point of Sale (POS) systems, authorities have proposed a tenfold increase in penalties. The fine for tax evasion through POS machines could rise from Rs 500,000 to Rs 5 million. Strict action is also expected against businesses maintaining secret cash rates outside the official POS system.

Amendments are being prepared for Section 114B of the Income Tax Ordinance, 2001, to enable decisive action against non-filers, sources confirmed.

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