Budget 2025: Government Plans Crackdown on Tax Evaders

In the upcoming Budget 2025, the federal government is planning strict actions against tax evaders. As part of the proposed measures, individuals outside the tax net could face various restrictions aimed at increasing compliance and revenue collection.

Sources reveal that the budget includes a proposal to empower the Federal Board of Revenue (FBR) with extensive authority. “A proposal has been put forward to authorize the Federal Board of Revenue (FBR) to restrict access to defaulters’ bank accounts, ban the transfer of immovable property, and seal business premises.”

In addition, “there is also a proposal to empower the FBR to confiscate immovable property and prohibit unregistered individuals from purchasing, registering, or booking vehicles.” However, “it has also been proposed that the restriction on the purchase of rickshaws, motorcycles, tractors, and vehicles up to 800cc should not apply to unregistered individuals.”

Another significant proposal includes “plans to limit banking transactions for individuals outside the tax net.” Furthermore, tax returns will become more detailed, as “income tax returns will include details of close family members, including parents, spouse, and sons under the age of 25.”

Even “details of unmarried or widowed daughters may also be included in the income tax returns.” A major structural shift is also under review, as “the filer and non-filer categories may be abolished, and a new classification of eligible and ineligible individuals is being proposed.”

If implemented, these steps could mark a turning point in Pakistan’s tax enforcement landscape, putting significant pressure on those who have remained outside the formal financial system.