Why You Must Become a Filer in Pakistan
Why You Must Become A Filer In Pakistan
If you’re working, running a business, or even earning passive income in Pakistan, one of the smartest financial decisions you can make is becoming a filer with the Federal Board of Revenue (FBR). Let’s break it down in a simple and clear way.
What is FBR, and Why Should You Care?
The Federal Board of Revenue (FBR) is Pakistan’s central authority for tax collection. It collects Income Tax, Sales Tax, and other levies and ensures that citizens and businesses follow the country’s tax laws.
Types of Taxpayers in Pakistan:
| Category | Definition |
| Filer | Submits income tax return within the due date |
| Late Filer | Submits return after the deadline (with penalty) |
| Non-Filer | Doesn’t file a tax return at all |
Why Being a Filer Is Totally Worth It?
If you’re still a non-filer, here are real benefits you’re missing out on:
Lower Withholding Taxes:
Filing means you pay less tax on:
- Your salary
- Bank profits
- Car and property transactions
Non-filers pay much higher rates across the board.
Why Being a Non-Filer is Risky?
If you choose to stay a non-filer, be ready to deal with:
- Higher tax rates
- Legal pressure from FBR
- A permanent record after getting your NTN (National Tax Number). Once your NTN is issued, it can’t be undone—even if you stop filing. You’re always on FBR’s radar.
Quick Fact: What is Withholding Tax?
It’s an advance tax that is automatically deducted by:
• Your employer (on salaries)
• Banks (on profit/interest)
• Excise offices (on car registration)
These institutions are legally bound to deduct this on FBR’s behalf.
Final Thoughts:
Becoming a filer is not just a legal obligation—it’s a financial strategy. It reduces your taxes, keeps you safe from legal troubles, and opens doors to better financial opportunities.
Don’t wait. File your tax return and take control of your financial future today at the Institute of Corporate and Taxation!
