12 million people became filers only to buy property or a car; only 7.5 million keep filing, FBR data shows

Nearly 12 million income tax return filers in Pakistan registered only to buy or sell property or a vehicle, while only about 7.5 million file returns year after year, according to Federal Board of Revenue data reported by Business Recorder on Thursday.

Why people become one-time filers

Being on the Active Taxpayers List (ATL) cuts the withholding tax you pay when you buy or sell a plot, a house or a car, and non-filers pay much higher rates or are barred from some deals. Many buyers, often including spouses and dependent children in whose names property is registered, file a return once to get the filer rate and never file again. See the rates side by side in our filer vs non-filer withholding tax guide.

What the FBR is doing about it

• The FBR's system keeps sending email notices to all registered persons, so most one-time filers do not notice they are out of compliance until they open their IRIS account for the next transaction and find themselves marked inactive.
• FBR sources told Business Recorder the system may need to be "cleansed" by removing the filing requirement for people with no income.
• The Finance Act 2025 tried this through "restrictions on economic transactions" tied to declared income, but sources said that was diluted by political pressure. If it is restored, spouses and dependent children would no longer need to file just for a one-off purchase.

What it means if you are buying property or a car

1. Check your status before the deal. If you filed once years ago and stopped, you may no longer be on the ATL, and you will pay the higher non-filer rate. Missing the 31 October deadline this year moved thousands of people to inactive, Business Recorder has reported.
2. Late filing costs money. Rejoining the ATL after the deadline usually means a surcharge (how the surcharge works).
3. Work out the tax first with the property tax calculator, the stamp duty calculator and, for vehicles, the car registration tax calculator.
4. New to filing? Our step-by-step guide covers IRIS registration and filing a return.

Why it matters

A tax base where millions of registered filers exist only for one transaction makes it harder to collect income tax from people who earn, and adds to pressure on salaried workers and documented companies. The FBR chairman said the same day that the government wants to phase out the super tax on large companies (our story).