How can I avoid extra withholding tax when buying a car in Pakistan?

Question

I am planning to buy a new car from a local dealership. I heard that non-filers have to pay higher withholding tax. How can I make sure I am considered a filer before the purchase?

Answer 1

Yes, filers pay lower withholding tax rates compared to non-filers. You can become an active filer by submitting your Income Tax Return for Tax Year 2025 before the due date.

Once your return is processed and your name appears on the Active Taxpayers List (ATL), you will be entitled to reduced tax rates.