Being a non-filer is now the expensive choice
For years, becoming a tax filer in Pakistan was mostly about saving on withholding tax. From the 2026-27 budget onwards, the gap between filers and non-filers has widened sharply, and the government has added powerful enforcement tools. Staying off the Active Taxpayer List (ATL) is now costly and, increasingly, impractical.
Three categories, not two
The law now recognises three statuses:
- Filer: on the ATL, having filed on time, and pays the lowest transaction taxes.
- Late filer: filed, but after the deadline, and pays more than a timely filer on certain transactions such as property.
- Non-filer: not on the ATL, pays the highest rates and faces restrictions.
Where non-filers pay more
- Property: advance tax on the purchase (Section 236K) and sale (Section 236C) of immovable property is substantially higher for non-filers, and a 1% deemed-income tax under Section 7E can apply to higher-value property.
- Vehicles: withholding tax on registration and transfer is a multiple of the filer rate, rising with engine size.
- Banking: higher withholding on certain transactions and cash withdrawals, plus restrictions on opening new accounts.
- Everyday costs: higher withholding across many routine transactions adds up over a year.
Enforcement is getting tougher
The FBR is moving from passive higher taxes to active enforcement, using real-time databases to link asset transactions to taxpayer status. Measures being rolled out include restrictions on major purchases by non-compliant persons, and steps such as blocking SIMs, utility connections or travel for high-spending non-filers. The direction is clear: economic life is being tied to being on the ATL.
The good news: becoming a filer is straightforward
If your income is below the exemption limit you may still file a simple nil return to get onto the ATL and unlock lower rates. For most people the cost of filing is far less than a single year of non-filer surcharges on a car or property transaction.
We can get you on the ATL
Tehsin Associates can register your NTN, file your return, and keep your filer status active year after year, so you always transact at the lowest legal rate.
Disclaimer: Exact rates and enforcement measures are set by the Finance Act 2026 and FBR notifications and can change. Contact us for advice on your situation.