Govt to Ban Non-Filers from Buying Property and Cars in Upcoming IMF Budget 2025

Introduction

In a bold move aligned with the International Monetary Fund (IMF) reform agenda, the Government of Pakistan is set to impose a ban on non-filers from purchasing property and vehicles in the Federal Budget 2025-26. This decisive step is aimed at broadening the tax base, boosting revenue, and curbing the shadow economy as Pakistan gears up for a new IMF loan program.

But what does this mean for everyday citizens, the real estate market, and the automotive industry?

Here’s a detailed look at the implications, the rationale, and the numbers behind this major policy change.

What Is a Non-Filer?

A non-filer is an individual or entity that does not appear on the Federal Board of Revenue (FBR)’s Active Taxpayers List (ATL). These are typically individuals who earn taxable income but do not submit their annual income tax returns.

According to FBR data:

Pakistan has more than 7 million registered taxpayers, but only about 3.5 million filed returns in Tax Year 2023.
The tax-to-GDP ratio remains alarmingly low at 8.5%, far below the 15% average of developing countries.

Details of the Proposed Ban

Key Highlights:

Non-filers will be prohibited from purchasing cars and immovable properties valued above a certain threshold (likely to be PKR 5 million and above for property).
The ban is expected to apply to:
- All types of vehicles, including cars, SUVs, and luxury bikes.
- Real estate transactions, particularly for residential and commercial plots, houses, and apartments.
Enforcement via CNIC verification at the time of transaction — linking buyers directly to the FBR ATL.
Expected implementation: July 2025, following the announcement of the FY 2025-26 budget.

Why This Move?

1. IMF Requirements

Pakistan is negotiating a new long-term loan facility from the IMF. The lender has consistently emphasized the need to:

Increase tax revenue
Improve tax compliance
Crack down on informal and untaxed wealth

This restriction is part of Pakistan’s broader commitment to fiscal discipline and structural reforms under IMF guidance.

2. Expanding the Tax Net

By denying major asset purchases to non-filers, the government is incentivizing registration and compliance.
In previous years, non-filers were allowed to purchase assets at higher tax rates, but this soft deterrent failed to yield significant results.

3. Curbing Money Laundering and Undocumented Wealth

Large-scale property and car purchases have historically been used to park black money. The ban aims to discourage non-transparent cash transactions and bring wealth into the formal economy.

Impact on Key Sectors

Real Estate

Expected short-term dip in demand, especially in luxury segments.
Long-term market formalization could increase government revenue through documented transactions.
Real estate developers may shift focus to filer-targeted marketing and affordable housing.

Automotive Industry

Dealers may see a reduction in cash-based car sales.
Vehicle leasing and financing, often requiring tax documentation, may become more common.
Car manufacturers may lobby for transitional arrangements.

Challenges and Considerations

Enforcement mechanism needs to be foolproof — past efforts to restrict non-filers have been bypassed through proxies or benami transactions.
Awareness campaigns will be critical in informing the public and encouraging tax compliance.
Political pushback from certain lobbies and traders is expected, potentially delaying implementation.

Expert Opinions

Dr. Hafeez Pasha, economist:

“This move could finally force the privileged class to come under the tax net, but it will require strong political will to implement effectively.”

FBR Official (anonymous):

“We are developing automated systems that will block property and car purchases by CNIC holders not listed on the ATL in real-time.”

What Should You Do?

If you’re a non-filer:

✅ File your income tax return now to avoid future restrictions.

✅ Get listed on the FBR Active Taxpayer List (ATL).

✅ Consult a tax consultant or use the FBR’s IRIS portal to file your return and pay any dues.

Conclusion

The proposed ban on property and vehicle purchases for non-filers represents a turning point in Pakistan’s economic reform journey. As the country seeks to fulfill IMF conditions and stabilize its economy, widening the tax net is not just a fiscal necessity — it’s a matter of national interest.

By forcing financial transparency and promoting responsible taxation, this policy may be the push Pakistan needs to transition toward a formal, fair, and functioning economy.

Frequently Asked Questions (FAQs)

Q1. What is the last date to become a filer before this ban is implemented?
A: Although the exact date will be clarified in the Budget 2025 announcement, becoming a filer before July 1, 2025, is highly recommended.

Q2. Can I buy a car in someone else’s name if I’m a non-filer?
A: The government is also working on blocking proxy or benami purchases through stronger CNIC-linked checks.

Q3. Will this apply to used cars and old property too?
A: Likely yes, if the transaction involves a transfer of ownership officially through legal channels.

6.30 pm ( Final Budget in Brief 2024-25 (12.06.2024) (2).xlsx

Pakistan’s Budget 2025: Property and Car Ban on Non-Filers