The latest budget has left the public confused because of the complex discrimination of tax filers and non-filers. For example. non-filers can no longer buy brand new cars or property if it\’s worth more than PKR 5 million. The way new budget differs filers and non-filers are spread over almost every form of investment, whether you invest in the stock exchange, real estate, mutual funds, or any other form of investment, you\’ll face the situation where you\’ve to perform some sort of financial transactions and taxes you pay on them would be a different scenario for filers and non-filers. However, the bad news for non-filers is that, whether you buy motor vehicles, house or even plot, the taxes will be doubled for you.

But the confusion lies in the question that who exactly is a tax filer? Particularly overseas Pakistanis are deeply concern about this matter. Because they may have to pay double taxes on a purchase of any property valued at more than PKR 5 Million, even without owning any source of income in Pakistan. Interestingly, if you don\’t have taxable income, for you, being a tax filer surely doesn\’t mean you\’re a taxpayer. At the same time, if you are taxed but you don’t file it, you may be a taxpayer but you will still not be considered as a tax filer.

But Who is a tax filer? According to the law of the country, under Section 2 (23A) of the Income Tax Ordinance, 2001,  a tax filer is a person whose name is included in the Active Taxpayers List (ATL) maintained by Federal Board of Revenue. If a person has filed his wealth statement under section 115 or tax returns under section 114, his name is included under the ATL.

Active Taxpayers List is frequently updated by the Federal Board of Revenue (FBR) each Monday on 12:00 am. Means that, if you file your tax returns today, you will be added in ATL list coming Monday, and will be officially certified as a tax filer.

But how my bank will know that I\’ve become a tax filer? The ATL list of FBR will also be updated for the banks, so from then onwards, your bank will know to treat you as a tax filer.