In this comprehensive guide, we will delve into the detailed tax rates for filers and non-filers in Pakistan, as fixed by the Federal Board of Revenue (FBR) for the period of July 1, 2023, to June 30, 2024.
Understanding the tax rates is essential for individuals and businesses alike to ensure compliance with the tax regulations in the country.
We will explore the specific tax rates for various income sources, including prize bonds, savings accounts, rent income, bonus shares, property transactions, motor vehicle-related taxes, banking transactions, and more.
Comparison Table: Filer vs Non-Filer
| Category | Filers (%) | Non-Filers (%) |
|---|---|---|
| Prize Bonds | 15 | 30 |
| Savings Account Profits | 15 | 30 |
| Rent Income | 5-15 | 10-15 |
| Bonus Shares | 10 | 20 |
| Auctioned Property | 5 | 10 |
| Motor Vehicle Leasing | Exempt | 12 |
| Motor Vehicle Registration | Rs10,000 - Rs0.5 million | Rs30,000 - Rs1.5 million |
| Token Tax on Vehicles | Rs800 - Rs10,000 | Rs1,600 - Rs20,000 |
| Commission | 12 | 24 |
| Banking Transactions | Exempt | 0.6 |
| International Debit Card Transactions | 2 | 10 |
| Property Transactions | 2 | 7 |
| Specific Services | 3 | 6 |
| General Services | 7 | 14 |
| Power Consumption (Rs25,000 bill) | Exempt | 7.5 |
This table provides a clear overview of the tax rates in Pakistan for different categories, including power consumption, specific and general services, international debit card transactions, commission, token tax on vehicles, bonus shares, and auctioned property.
The table showcases the tax rates applicable to both tax filers and non-filers, making it easier to compare and understand the differences.
Tax Rates on Prize Bonds
When it comes to prize bonds, the FBR has implemented different tax rates for filers and non-filers. For filers, the tax rate is set at 15%, while non-filers are subjected to a higher tax rate of 30%. This tax is applicable on the prize amount received from prize bonds.
Tax Rates on Savings Account Profits
The FBR has revised the tax rates on savings account profits for the current fiscal year. For filers, the income tax deduction rate has been increased to 15% from the earlier rate of 10%. However, non-filers are required to pay a higher tax rate of 30% on their savings account profits.
Tax Rates on Rent Income
Income generated from rent is also subject to taxation in Pakistan. The FBR has specified varying tax rates for filers and non-filers in this category. For tax filers, the tax rate ranges from 5% to 15% based on the rental income.
On the other hand, non-filers are subjected to a tax rate of 10% to 15% for their rental income in the ongoing financial year.
Tax Rates on Bonus Shares
If you receive bonus shares, you should be aware of the applicable tax rates. For filers, a tax rate of 10% is charged on bonus shares, whereas non-filers are required to pay a higher tax rate of 20%.
Tax Rates on Auctioned Property
In the case of property auctions, the FBR has determined different tax rates for filers and non-filers. Tax filers will be charged a tax rate of 5% based on the amount of the property auctioned, while non-filers will pay a higher tax rate of 10%.
Tax Rates on Motor Vehicle Leasing
Tax rates for motor vehicle leasing also differ for filers and non-filers. Filing tax returns can benefit individuals in this regard as tax filers are exempted from paying any tax on motor vehicle leasing. However, non-filers are required to pay a tax rate of 12% on the total lease amount.
Tax Rates on Motor Vehicle Registration
When registering a motor vehicle, the FBR levies taxes based on the engine capacity. For tax filers, the tax rate ranges from Rs10,000 to Rs0.5 million, depending on the engine capacity. On the other hand, non-filers face higher tax rates, ranging from Rs30,000 to Rs1.5 million for motor vehicle registration.
Token Tax on Vehicles
Token tax is another important consideration for vehicle owners. Tax rates for token tax differ for filers and non-filers. For tax filers, the tax amount ranges from Rs800 to Rs10,000 based on the vehicle category, while non-filers are required to pay higher tax rates, ranging from Rs1,600 to Rs20,000.
Tax Rates on Commission
For individuals receiving commission payments, the FBR has established separate tax rates for filers and non-filers. Tax filers are subjected to a tax rate of 12% on their commission earnings, while non-filers face a higher tax rate of 24%.
Tax Rates on Banking Transactions
Banking transactions are also subject to taxation, albeit with different rates for filers and non-filers. Tax filers are not charged any tax on banking transactions, while non-filers are required to pay a tax rate of 0.6% on the transaction amount.
Tax Rates on International Debit Card Transactions
International transactions made through debit cards are also subject to taxation in Pakistan. Tax filers are charged a tax rate of 2% on such transactions, whereas non-filers face a higher tax rate of 10%.
Tax Rates on Property Transactions
When it comes to property transactions, the FBR has set distinct tax rates for filers and non-filers. Tax filers are subjected to a tax rate of 2% on the transaction amount, while non-filers face a higher tax rate of 7%.
Tax Rates on Specific and General Services
Tax rates also apply to specific and general services in Pakistan. For tax filers, the tax rate is 3% on specific services, while non-filers face a higher tax rate of 6%. Similarly, tax filers are charged a tax rate of 7% on general services, whereas non-filers are subjected to a tax rate of 14%.
Tax Rates on Power Consumption
Power consumers with a monthly bill of Rs25,000 need to be aware of the tax rates applicable to them. Tax filers are exempted from paying any tax on power consumption, while non-filers are charged a tax rate of 7.5% on their monthly bills.
Understanding the tax rates for filers and non-filers in Pakistan is crucial for individuals and businesses to ensure compliance with the tax regulations set by the Federal Board of Revenue (FBR).
This comprehensive guide has provided a detailed overview of the tax rates applicable to various income sources, including prize bonds, savings account profits, rental income, bonus shares, property transactions, motor vehicle-related taxes, banking transactions, and more.
By staying informed about the tax rates, individuals and businesses can fulfill their tax obligations and make well-informed financial decisions.
