Islamabad 8 August : In an effort to deepen the tax base and enhance compliance, the Federal Board of Revenue (FBR) offers significant incentives to registered tax filers while imposing steep penalties and restrictions on non-filers.
The government has increased the withholding tax rate on daily bank withdrawals exceeding Rs50,000 by non-filers from 0.6% to 0.8%. The move aims to boost revenue collection and expand the country’s tax net.
New rate: 0.8% tax on daily withdrawals exceeding Rs50,000 by non-filers.
Previous rate: 0.6%, meaning an additional Rs200 will now be deducted for every Rs100,000 withdrawn.
READ MORE: Govt Cuts Advance Tax for Property-Buying Filers
According to official sources, the revised rate will apply to all non-filers — individuals who do not file their income tax returns — and is intended to discourage large undocumented cash transactions. The change is effective immediately, with banks responsible for implementing the deduction.
Key Differences in Tax Rates & Financial Transactions
| Transaction Type | Filers | Non-Filers |
|---|---|---|
| Bank Withdrawals (> PKR 50,000/day) | 0.3% withholding tax | 0.6% withholding tax |
| Property Transactions | 1% withholding tax; no purchase limit | 2% withholding tax; restricted from buying high-value properties |
| Vehicle Registration & Token Tax | Significantly lower rates | Much higher rates, sometimes double |
| Import/Export Duties | Imports: ~5.5%; Exports: ~6% | Imports: ~8%; Exports: ~9% |
| Bank Profit & Dividends Tax | ~10–15% | 15–20% plus increased tax on savings schemes |
| Prize Bond Winnings | 15% tax | 25–30% tax |
Extra Penalties & Restrictions for Non-Filers
- Property Ownership: Non-filers are often barred from purchasing properties above a specific value (commonly PKR 5 million)
- Mobile, Utilities, and Travel: Under Section 114B of the Income Tax Ordinance (2022 Finance Act), FBR can block non-filers’ mobile SIMs and disconnect utilities like electricity and gas. Travel restrictions or higher airport taxes are also possible
- Business and Financial Access: Non-filers face restricted access to loans, business licenses, insurance, investment accounts, and stock trading, hampering financial inclusion
- Airport Tax: Non-filers may pay up to PKR 30,000 as airport tax, whereas filers pay significantly lower — PKR 15,000 — and may avoid travel restrictions altogether .
Benefits for Filers Beyond Tax Rates
- Lower Costs & More Flexibility: Filers enjoy reduced tax rates, fewer restrictions on asset purchases, and better access to financial services like loans and credit approvals pakistantax.com.pkLinkedInpktaxcalculator.com.
- Access to Refunds and Official Lists: Filers are included in the Active Taxpayer List (ATL), making it easier to claim tax refunds, access benefits, or participate in government schemes taxconsultancy.pkpktaxcalculator.compakistantax.com.pk.
- Greater Credibility: Being a filer enhances one’s reputation with banks and financial institutions, facilitating smoother financial transactions and boosting trust LinkedInpktaxcalculator.com.
- Eligibility for Government Programs: Filers qualify for subsidies, housing financing schemes, and other economic incentives — a privilege non-filers do not enjoy paktaxcalculator.pk.
Verdict
The Pakistani tax framework is increasingly tilted towards rewarding compliance while penalizing evasion. Filers benefit from a range of reduced taxes, financial freedoms, and institutional support. By contrast, non-filers bear an extra financial burden — facing higher taxes, restricted access to assets, financial services, travel, and basic utilities.
In essence, becoming a filer not only lowers your tax rate but opens financial and legal pathways that non-filers find hard to navigate — a central component of FBR’s strategy to bring more Pakistanis into the tax net.
Let me know if you’d like a breakdown of country-wide statistics, or a how-to guide on becoming a filer.
