Islamabad: The government on Tuesday increased the tax ratio on cash withdrawals by the non-filers in the budget for FY2025-26.

In the budget for FY 2025-26, the tax ratio on cash withdrawals by non-filers has been increased from 0.6pc to 1pc.

Meanwhile, non-filers will no longer be allowed to open bank accounts. In addition, they will be barred from investing in securities and mutual funds. The move is aimed at curbing undocumented cash transactions and encouraging tax compliance.

According to the budget document, non-filers will also be prohibited from purchasing vehicles or immovable property.

To expand the tax base and enhance enforcement, the government has decided to engage the external auditors.