The Finance Act 2025-26 further widened the tax gap between filers and non-filers. Being on the FBR Active Taxpayer List (ATL) is no longer optional for anyone doing significant financial transactions in Pakistan. Non-filers face higher rates across banking, property, vehicle registration, and more.
| Transaction | Filer Rate | Non-Filer Rate | Extra Cost |
|---|---|---|---|
| Bank cash withdrawal (above Rs 50,000/day) | 0.1% | 0.6% | 6× more |
| Property purchase (under Rs 50M) | 1% | 2% | 2× more |
| Property sale | 1–4% | 2–8% | 2× more |
| New car registration (up to 1300cc) | Rs 10,000 | Rs 30,000 | 3× more |
| Dividend income | 15% | 30% | 2× more |
| Prize bond winnings | 15% | 25% | 67% more |
| Profit on NSS / bank deposits | 15% | 30% | 2× more |
Source: FBR Finance Act 2025-26. Rates subject to change. Verify at fbr.gov.pk.
Consider a person who: withdraws Rs 50,000/week from bank, buys a 1000cc car, and earns Rs 50,000 in NSS profit.
Extra WHT paid as non-filer:
Bank: 52 weeks × Rs 50,000 × 0.5% extra = Rs 13,000
Car: Rs 20,000 extra registration
NSS profit: Rs 50,000 × 15% extra = Rs 7,500
Total extra cost: Rs 40,500 per year — just for not filing.
Technically there's no income tax liability, but filing a nil return is still strongly recommended. It puts you on the ATL and saves you from all non-filer withholding tax surcharges — which are often much more than the cost and effort of filing.
Yes. Freelancers, self-employed professionals, and sole proprietors can all register with FBR and file returns. Freelancers in the IT/export sector may also benefit from special reduced tax rates under the 2025-26 IT sector provisions.