In Pakistan, the terms “filers” and “non-filers ” are usually used when discussing taxes, banking, and real estate transactions. However, many people still do not understand what they mean and how they affect everyday life.
Whether you are a businessman, an officer, or want to invest in a property or vehicle, it is essential to understand the difference between filters and non-filters.
Who is Filers?
A filer is a person or company registered in the Federal Board of Revenue (FBR) and presents tax returns each year.
Filer of tax returns means that once you have submitted your name on the active taxpayer list (ATL), the government announces revenues, expenses and taxes, proving that you are a tax -paying citizen.
How to become a filer?
To become a filer in Pakistan, you need:
- Sign up for a national tax figure (NTN) on the FBR website.
- Make sure you archive each year to stay at.
Who is a non-filers?
A non-filer is one who is not registered with the FBR or has not been able to submit a tax return. Non-fillers are considered taxpayers who are not-observed, and often have high taxes and penalties on economic and real estate transactions.
- In simple words, if you are a non-filer, you are not in the good books of the tax system.
- Benefits of Being a Filer in Pakistan
Becoming a filer comes with several advantages. Let’s take a closer look:
1. Lower Tax Rates
Filers pay less tax on bank transactions, vehicle registration, property deals, and utility connections compared to non-filers.
2. No Restrictions on Property Purchase
Non-filers cannot buy property worth more than Rs. 5 million, while there’s no such limit for filers.
3. Easy Business Operations
Filers can register companies, open business accounts, and apply for government tenders without hurdles.
4. Better Financial Reputation
Being a filer adds credibility. Banks, government departments, and businesses consider you a responsible citizen.
5. Avoid Penalties
Non-filers may face penalties or legal notices from the FBR. Filing your return helps avoid such issues.
Why Non-Filers Should Become Filers
If you’re a non-filer, you’re missing out on many financial opportunities and paying more in taxes than required. Here are some strong reasons to change your status:
- Save money on taxes
- Get access to loans and investment options.
- Buy property and vehicles without restrictions.
- Avoid FBR audits and fines.
- Contribute to national development.
Key Differences Between Filer and Non-Filer
| Feature | Filer | Non-Filer |
|---|---|---|
| FBR Registration | Yes | No |
| Income Tax Return | Submitted | Not Submitted |
| Included in ATL | Yes | No |
| Tax Rates | Lower | Higher |
| Withholding Tax | Discounted | Double or Higher |
| Property Purchase Limit | No limit | Restricted |
| Banking Transactions | Lower tax | Higher tax |
| Car/Plot Registration | Easier and Cheaper | Expensive and Limited |
Who Should File a Tax Return?
You should file an income tax return if you:
- Earn a monthly salary above Rs. 50,000
- Own property or a vehicle
- Run a business or are self-employed.
- Have a bank account with a history of frequent transactions.
- Want to buy or sell an asset.
- Need to apply for visas, loans, or tenders.
Even if your income is not taxable, filing a return shows that you are part of the formal economy.
Final thoughts
The difference between filers and non-filers in Pakistan extends beyond taxes – it encompasses responsibility, trust, and financial freedom. Becoming a filer is simple, and the benefits are long-lasting. It saves you money, opens more opportunities, and helps create a strong national economy.
Therefore, if you are still a non-filer, it is now the right time to register with the FBR, file your tax return, and become an active taxpayer. It is not just a legal duty – this is your financial strength.
