The federal government is set to include Section 114C of the Tax Laws (Amendment) Bill, 2024, in the upcoming Finance Bill for 2025-26. This section aims to restrict economic transactions by non-filers in the new fiscal year as part of efforts to broaden the tax base.

However, the Federal Board of Revenue (FBR) has yet to update its online systems to enforce Section 114C effectively. In February 2025, FBR Chairman Rashid Mahmood Langrial requested a two-month extension from the National Assembly Standing Committee on Finance to develop the necessary technological infrastructure. The committee has deferred the implementation until a system demonstration is provided.

At the time, former Minister of State for Finance Ali Pervaiz Malik assured that despite the deferment, the FBR would continue efforts to document wealthy individuals and non-filers. He emphasized that non-filers would no longer be treated solely as revenue sources without facing prosecution.

The FBR, which already has access to immovable property transaction data, has been instructed to finalize the system with support from NADRA and provincial authorities. The new restrictions will exclude transactions by non-residents and public companies.

Additionally, the Revenue Division has been directed to clarify the definition of “cash and equivalent assets” and present a working demonstration of the updated system within two months.