Why It’s More Important Than Ever to Become a FBR Tax Filer inPakistan

There are many benefits of becoming a tax filer like access to government funding programs. It’s now very important and necessary to become a tax filer because of increasing restrictions on non-filers. Sim card blocking and restrictions on loans are one of few consequences you will face if you’re not tax filer. It’s important to register yourself on FBR and become a tax filer if you are eligible for filing tax.

Let’s discuss the advantage of becoming tax filer:

1 property transfer tax : Let me tell you advantage of this people who are tax filer pay only 1% tax but people who aren’t filers have to pay 2% tax . If you are planing to buy a car or a property you have to pay double tax if you aren’t tax filer. Now if you are active tax payer charges on vehicle registration will be from 7,500 Rs to 250,000 Rs but for instance you aren’t tax payer charges on your vehicle will get increase to 500,000 which is quite alot money so it’s better to get register on FBR and pay tax.

2 Government benefits: Tax payer in Pakistan are eligible for certain government benefits such as tax credits and subsidies. Some government companies prefer to higher filers over non-filers because filer’s are more responsible and through this they can get access to government services . Many bussiness officials also like to work with filers for government tender’s and all.

3 visa applications : When applying for visa your agent or embassy will review your financial status in this case if you are a tax filer you can easily get visa. Visa processing is simplified with a valid Income Tax Return. Filing your Income Tax Return reduces the chances of legal notices. Becoming a tax filer can also reduce tax deductions at source by banks.

4 Government action : The federal government is basically going to make amendments in tax law bills 2024 into the next finance bill 2025-26 and this action will impose more taxes on non-filers. Finance Minister Muhammad Aurangabad said : “Ban people who do not file their tax returns from opening bank accounts and purchasing cars above 800cc”

5 penalty’s for not filling income tax: According to section 14 the penalty for late filing is calculated daily and is getting higher of the following: 0.1 of the tax payable for each day of default. Failure to obey FBR rules can lead to 50 million fine and it will get increase time to time. Non fillers pay higher taxes on transactions even on profit on debt so it’s important now to file tax in Pakistan.

6 loan eligibility: Tax filers are more likely to get government loans because of trust on them . If you are a non-filer might you not get access to government loans . Also in buying property you have to give extra tax if you are a non-filer.

7 sim card blocking : FBR can block your sim if you are a non-filer . From October 1 , 2024 non-filers are facing travel ban too , limiting their ability to travel abroad. Their passports might be restricted and they will face huge loans.

Let’s compare FBR rules for filer’s and non fillers:

• ● Purchase or sell of property is double for non-filer.
• ● Tax on commission income is 24% for non-filer while 12% for filer.
• ● Tax on goods/ office supplies is 9% for non-filer while 4.5% for filer.
• ● Tax on contracts is 15% for non-filers while 12% for filer’s.

Who is require to file income tax???

People who earn more than 50,000 rupess , all NTN holders , residents registered with trade association, whose property income is RS 230,000 annually, A person who earned taxable income in last two years . These are the people who are require to fle income tax if you are in this category register yourself.

( Pov: All details of income tax is given on offical website of FBR you can check it and can register yourself if you aren’t) The end….