The government has proposed a significant overhaul to the tax classification system under Section 115 of the Income Tax Ordinance, eliminating the existing distinction between filers and non-filers. The proposed overhaul will make over 10 crore Pakistanis ineligible to buy a car.
Under the new rules, individuals who fail to submit their income tax returns and wealth statements will no longer be eligible to purchase high-value assets or make investments.
As of last fiscal year, nearly 5.6 million of Pakistan’s 130 million adult population filed their tax returns, meaning that over 120 million (12 Crore) citizens are no longer eligible to buy a car or property in the country.
New Rules Target Non-Compliant Individuals
As per the proposed changes, only those who have filed their income tax returns and submitted their wealth statements will be permitted to:
- Purchase cars or immovable property,
- Invest in stocks, mutual funds, or government securities, and
- Open specific types of bank accounts.
Asset and Loan Access Tied to Tax Compliance
The plan further mandates that individuals seeking to access bank loans, credit, or financing must prove their income and repayment capacity through declared financial channels.
Those with undocumented sources of income will be restricted from availing these financial facilities unless they opt to submit a formal tax return.
Declaration Option for Previously Unregistered Individuals
To bring undocumented individuals into the tax net, the government will offer an “Option B” — a mechanism through which such persons may file a one-time return to declare assets, pay applicable taxes, and gain eligibility for financial participation in the formal economy.
Good .
A very good decision
Great! much needed and awaited move to bring black economy into the tax net!
as if pakistanis are dying to invest in property and vehicles, people barely make enough to eat and these clowns want taxes…apki ayaashi chalni chahiye hamari kheir hei.