ISLAMABAD (Rizwan Abbasi): The federal government has finalized preparations to introduce stringent measures in the upcoming Budget 2026-27 aimed at bringing high-net-worth individuals into the tax net and curbing the undocumented economy, according to sources.
Sources said multiple proposals are under consideration to tighten the net around the country’s wealthiest individuals, strengthen tax compliance, and further document the financial system. These include potential business and financial restrictions on affluent individuals, enhanced monitoring of suspicious transactions, and possible limitations on specific financial dealings.
According to sources, the Federal Board of Revenue (FBR) may be granted additional powers to take effective action against individuals operating outside the tax net. The government is also considering stricter conditions for non-filers and individuals involved in large-scale financial transactions as part of its broader strategy to expand the tax base and increase revenue.
On the other hand, a simplified tax scheme for traders is also under consideration. Sources said the proposed scheme includes a suggestion of a 1 percent tax based on annual sales, along with a condition that registered traders’ tax liability should not be lower than the previous year.
It is further proposed that traders enrolled under the scheme may be exempted from Point of Sale (POS) registration requirements and allowed to submit a simplified one-page tax return.
Sources added that the proposed trader-friendly scheme is being developed in consultation with the International Monetary Fund (IMF), with the aim of bringing more businesses into the formal tax system on a voluntary basis.
