ISLAMABAD – The Federal Board of Revenue (FBR) has introduced a significant distinction between tax rates for filers and non-filers for the current fiscal year.
FBR imposes higher taxes on non-filers across various financial transactions to encourage tax compliance and expand the tax net. These taxes will remain in place till June 2026.
Under the new regulations, non-filers faces up to double the tax rates compared to filers in several areas.
Tax on Cash Withdrawal
For example, a 0.8% tax will be levied on non-filers for cash withdrawals exceeding Rs 50,000 from banks, while filers will not face such a burden.
Tax on Savings Account Profits
Additionally, tax rates for non-filers are as high as 40% on savings account profits, compared to 20% for filers.
Tax on Debit or Credit Cards
Other significant changes include a 10% tax on international payments made via debit and credit cards for non-filers, and a tax rate of 30-40% for non-filers on winnings from prize bonds or lotteries.
Other Taxes
Teachers and service providers who are non-filers will face a withholding tax rate of 30%.
For dividend income, non-filers will pay 30% tax, while filers will pay only 15%. Non-filers will also face a 20% tax on bonus shares, and a 7.5% tax on electricity bills exceeding Rs 25,000 for residential non-filer users.
FBR also clarified that non-filers will have non-refundable taxes on wedding hall and event bills, while filers will benefit from refundable taxes.
For distributors and dealers, a tax rate of 2% will be applied to non-filers and 2.5% on retailers. The tax rate on service exports will remain at 1% for both filers and non-filers.
