The Senate Standing Committee on Finance has approved major amendments to the Finance Bill 2025, signaling a major shift in Pakistan’s tax policy.
Chaired by Senator Saleem Mandviwala, the committee gave the green light to several proposals, including a 500% increase in the property purchase limit for non-filers. Non-filers can now purchase property up to five times their declared assets, a move aimed at easing real estate transactions while encouraging asset declaration.
The bill also replaces the traditional “filer” and “non-filer” categories with “eligible” and “ineligible” persons. Ineligible individuals—those who don’t file tax returns—will face strict restrictions on buying property, vehicles, investing in securities, and operating bank accounts.
Additionally, a new tax on digital services has been introduced. Online academies, cloud services, streaming platforms, and telemedicine providers will now be taxed. However, small-scale freelancers and online sellers were exempted from this clause.
The Islamabad Club and other elite clubs lost their non-profit status due to their luxury services limited to a small elite group. Withholding tax on cash withdrawals by ineligible persons has been raised from 0.6% to 1%, while the income surcharge on earnings above Rs10 million was reduced slightly from 10% to 9%.
Finance Minister Muhammad Aurangzeb emphasized the need to eliminate the concept of “non-filers” and expand the tax net to restore credibility in Pakistan’s tax system.
