Karachi: The federal government has officially unveiled the tax structure for the fiscal year 2025–26, and this year’s budget draws a sharp line between tax filers and non-filers. The Finance Bill includes sweeping changes that heavily penalize non-filers, while offering comparatively lower rates for active taxpayers.
The detailed chart released by the Federal Board of Revenue (FBR) highlights that non-filers may pay up to three times more tax than filers on key transactions such as property purchases, cash withdrawals, and vehicle registration. The new slab system is aimed at increasing the tax net and discouraging non-compliance.
For example:
- On cash withdrawals, filers will pay 0%, while non-filers face 0.8% tax.
- Dividends are taxed at 15% for filers and 30% for non-filers.
- Purchasing a vehicle over 1000cc will incur double the tax if the buyer is a non-filer.
- Property sales come with 20% tax for non-filers, compared to 10% for filers.
- Bank transactions, educational fee payments, and even mobile/internet usage have steeper rates for those outside the tax system.
This strategy is part of the government’s broader economic reform, focusing on widening the tax base. By creating strong financial disincentives, the government hopes to encourage more citizens to become tax filers.
It’s important to note that property sellers not on the Active Taxpayers List (ATL) may face up to 6% capital gains tax, while filers benefit from lower slabs starting from 4.5% depending on holding period and asset class.
The 2025–26 budget clearly reflects a policy shift: compliance is rewarded, and tax evasion is penalized. With inflation already biting household incomes, this budget is a wake-up call for non-filers to register and contribute their fair share.