Since the percentage of Pakistanis who file income taxes is a mere 1%, the government

has been taking steps which could push more people to submit their tax returns, albeit
in the form of saving on withholding and advance income taxes.

These taxes are pretty high for income tax non-filers and you often end up paying huge
amounts for everyday tasks, services and products. The government incentive here is
that you can start filing returns and pay less withholding taxes. These can be
reimbursed at the end of the year, saving you thousands of rupees each month.

So heres a list of activities where you will save on withholding taxes if you file your tax
returns. The list mentions the activity/business and the applicable tax on both, filers and
non-filers:

Personal Activities
Even common tasks which do not relate to any company or organization are now
charged taxes and non-filers are especially asked to pay WHT even when theres no
similar tax on filers.

Heres the breakdown:

On Winning a Prize Bond, Quiz Bond or Crossword Puzzle: Filer 15%, Non-filer
20%

Transfer of property: Filer 1%; Non-filer 2%

Advance Tax on purchase of property:

o Immoveable property worth upto Rs. 4 million: No tax

o Immoveable property worth over Rs. 4 million Filer 2%; Non-filer 4%

Tax on General Insurance Premium and Life Insurance Premium:

o General Insurance Premium: Non-filers 4%

o Life Insurance Premium (Over 0.2 million annual): Non-filers 1%

Banking Transactions
Every bank transaction you perform is also taxed based on the amount you send or
cash out. The tax amounts are listed below:
 On cash withdrawal (Over Rs. 50,000): Filer 0.3%, Non-filer 0.6%

On Demand Draft, Payment Order, CDR, STDR, RTC or similar instrument (Over
25,000): Filer 0.3%, Non-filer 0.6%

On Online money transfer or other electronic mail (Over 25,000): Filer 0.3%,
Non-filer 0.6%

Advance tax on sale of demand draft, pay order etc.: Filer 0%; Non-filer 0.6%

All bank transactions: Filer 0%; Non-filer 0.6%

Motor Vehicles
Most activities related to motor vehicles also include withholding tax (WHT) based on a
persons status as a filer or non-filer, where the latter are taxed higher:

Registration of a vehicle:

o Upto 850cc: Filer Rs. 10,000; Non-Filer Rs. 10,000

o 851cc to 1000cc: Filer Rs. 20,000; Non-Filer Rs. 25,000

o 1001cc to 1300cc: Filer Rs. 30,000; Non-Filer Rs. 40,000

o 1301cc to 1600cc: Filer Rs. 50,000; Non-Filer Rs. 100,000

o 1601cc to 1800cc: Filer Rs. 75,000; Non-Filer Rs. 150,000

o 1801cc to 2000cc: Filer Rs. 100,000; Non-Filer Rs. 200,000

o 2001cc to 2500cc: Filer Rs. 150,000; Non-Filer Rs. 300,000

o 2501cc to 3000cc: Filer Rs. 200,000; Non-Filer Rs. 400,000

o Above 3000cc: Filer Rs. 250,000; Non-Filer Rs. 450,000

Transfer of registration or ownership of a vehicle:

o Upto 850cc: Filer Rs. 0; Non-Filer Rs. 5,000

o 851cc to 1000cc: Filer Rs. 5,000; Non-Filer Rs. 15,000

o 1001cc to 1300cc: Filer Rs. 7,500; Non-Filer Rs. 25,000

o 1301cc to 1600cc: Filer Rs. 12,500; Non-Filer Rs. 65,000

o 1601cc to 1800cc: Filer Rs. 18,750; Non-Filer Rs. 100,000

o 1801cc to 2000cc: Filer Rs. 25,000; Non-Filer Rs. 135,000

o 2001cc to 2500cc: Filer Rs. 37,500; Non-Filer Rs. 200,000

o 2501cc to 3000cc: Filer Rs. 50,000; Non-Filer Rs. 270,000

o Above 3000cc: Filer Rs. 62,500; Non-Filer Rs. 300,000

At the time of sale of new vehicle (from manufacturer):

o Upto 850cc: Filer Rs. 10,000; Non-Filer Rs. 10,000

o 851cc to 1000cc: Filer Rs. 20,000; Non-Filer Rs. 25,000

o 1001cc to 1300cc: Filer Rs. 30,000; Non-Filer Rs. 40,000

o 1301cc to 1600cc: Filer Rs. 50,000; Non-Filer Rs. 100,000

o 1601cc to 1800cc: Filer Rs. 75,000; Non-Filer Rs. 150,000

o 1801cc to 2000cc: Filer Rs. 100,000; Non-Filer Rs. 200,000

o 2001cc to 2500cc: Filer Rs. 150,000; Non-Filer Rs. 300,000

o 2501cc to 3000cc: Filer Rs. 200,000; Non-Filer Rs. 400,000

o Above 3000cc: Filer Rs. 250,000; Non-Filer Rs. 450,000

Private motor vehicle tax:

o Upto 1000cc: Filer Rs. 800; Non-Filer Rs. 1,200

o 1001cc to 1199cc: Filer Rs. 1,500; Non-Filer Rs. 4,000

o 1200cc to 1299cc: Filer Rs. 1,750; Non-Filer Rs. 5,000

o 1300cc to 1499cc: Filer Rs. 2,500; Non-Filer Rs. 7,500

o 1500cc to 1599cc: Filer Rs. 3,750; Non-Filer Rs. 12,000

o 1600cc to 1999cc: Filer Rs. 4,500; Non-Filer Rs. 15,000

o 2000cc & above: Filer Rs. 10,000; Non-Filer Rs. 30,000

Annual tax for transport service providers:

o Goods transport capacity: Filer Rs. 2.5/kg; Non-filer: Rs. 4/kg

o Vehicle with laden weight capcity of over 8,120kg: Rs. 1,200

Passenger transport service providers:

o Capacity between 4 to 9 passengers: Filer Rs. 50 per seat, Non-filer Rs.

100 per seat

o Capacity between 10 to 19 passengers: Filer Rs. 100 per seat, Non-filer

Rs. 200 per seat

o Capacity of 20 passengers or more: Filer Rs. 300 per seat, Non-filer Rs.
500 per seat

Profits
Income on dividend/payment of dividend: Filer 12.5%, Non-filer 20%

Income on Sukuk: Filer 10% to 15%, Non-filer 17.5%

Profit on National Savings Scheme or Post Office Savings: Filer 10%, Non-filer
17.5% (Over Rs. 5 lacs)

Profit on debt paid by banking company: Filer 10%, Non-filer 17.5% (Over
Rs. 5 lacs)

Profit on bonds , certificates, debentures, securities: Filer 10%, Non-filer

17.5% (Over Rs. 5 lacs)

On extraction of minerals from mines: Filer 0%; Non-filer 5%

On brokerage or commission:

o Advertising agents: Filer 10%, Non-filer 15%

o Life Insurance Agents (Commission under Rs. 5 lacs): Filer 8%, Non-filer
16%
o People not covered in the above two points: Filer 12%, Non-filer 15%

Payments to Non-Residents
When any Pakistani makes a payment to non-residents or non-residents company
through a contract, the following difference in taxes applies to filer and non-filers:

On construction related contracts: Filer 7%, Non-filer 12%

On other services and TV advertisements: : Filer 7%, Non-filer 12%

Sale of goods (Company): : Filer 4%, Non-filer 6%

Sale of goods (Other than company): Filer 4.5%, Non-filer 6.5%

On Providing Services (Company): Filer 8%, Non-filer 12%

On Providing Services (Other than company): Filer 10%, Non-filer 15%

Execution of any other contract: Filer 7%, Non-filer 12%

Local Payments
When any business person makes a payment to local residents or companies, the
following difference in taxes applies to filer and non-filers:

On supply by distributors: Filer 3%, Non-filer 3.5%

On sale of other goods (Company): Filer 4%, Non-filer 6%

On sale of other goods (Other than company): Filer 4.5%, Non-filer 6.5%

Payments to Electronic or Print Media for ads: Filer 1.5%, Non-filer 12 to 15%

On transport services (Company): Filer 8%, Non-filer 12%

On transport services (Other than company): Filer 10%, Non-filer 15%

Execution of any other contract (Company): Filer 7%, Non-filer 10%

Execution of any other contract ( Other than company): Filer 7.5%, Non-filer
10.5%
 On selling petroleum products to a petrol pump: Filer 12%, Non-filer 15%