Top Arguments in Support of Your Inclusion on FBR's Active Taxpayers List

Before we begin our article, we would like to remind you that the filing date for your income tax return is September 30, 2022, which is coming up soon. By using the FBR's IRIS interface, you may quickly file your income tax return online.

Let's now start the process!

Our nation's population is largely made up of wage earners and business owners. Millions of working people and business professionals call this nation home, but the tax-to-GDP ratio is frighteningly low. Why then do all of these people avoid paying taxes? Well, a lack of awareness is the main cause of the tax gap problem.

One of the main sources of income for the state's economy in Pakistan is money taken in from taxpayers. Furthermore, paying taxes assessed on one's possessions is a legal obligation for every Pakistani citizen. The Federal Board of Revenue (FBR) and the Pakistani government are making serious attempts to increase the number of persons who submit tax returns by enforcing penalties against non-filers and offering rewards to those who do.

 FBR Pakistan has begun distributing letters to individuals instructing them to register for the National Tax Number and have their names added to the Active Taxpayers List after the requirement that salaried and company individuals file tax returns (ATL).

FBR Pakistan has begun distributing letters to people instructing them to register for a National Tax Number and has their names added to the Active Taxpayers List after the requirement that salaried and business individuals file tax returns (ATL).

WHO IS DEPENDENT ON TAX RETURNS?

According to Pakistan's Tax Law, everybody with an annual income of PKR 600,000 or more is required to file tax reports every year. Every taxpayer in Pakistan has a unique number assigned to them by the government of Pakistan called a "National Tax Number," or simply "NTN." The Federal Board of Revenue (FBR) added your name to the list of Active Taxpayers in this manner.

 You will have the advantage of paying less taxes on financial activities, such as various bank transactions, the sale or purchase of real estate or a car, than non-filers after your name is added to ATL.

LIST OF PERKS OF FILER OF TAXES IN PAKISTAN

Do you intend to begin submitting tax returns? The ideal time to do it is right now because this year's deadline is also drawing near. Additionally, Pakistani taxpayers receive greater tax relief than non-filers by a wide margin. So let's look at the list of benefits that each Pakistani taxpayer receives.

 In comparison to the amount of tax paid by non-filers, taxpayers are only required to pay half of the withholding tax.

·         A non-filer is prohibited from holding property worth more than PKR 50 lakh, but individuals who consistently file tax returns are permitted to buy any type of property.

·         Importers of raw materials who are not filers must pay 8% of the entire import, however, taxpayer importers only have to pay 5.5%.

·         In Pakistan, non-filer exporters must pay a 9% tax on commercial exports. However, taxpayers are only required to cover a 6% levy on their commercial exports.

·         In contrast to the 15% tax rate set for tax filers, a total of 20% tax is due on the dividends (or firm profit) of non-filers.

·         In Pakistan, a non-filer must pay 15% tax compared to the 10% tax paid by active taxpayers on bank and savings plan profits.

·         In comparison to the 25% tax paid by non-filers, tax filers only pay 15% tax when they receive prize money through prize bonds.

·         People who consistently file income tax returns are only required to pay 1% of the 2% tax on property transfers.