Filer is a term used in Pakistan to refer to individuals who are registered taxpayers with the Federal Board of Revenue (FBR). Filing tax returns is an essential civic duty in Pakistan and has several benefits for the country and individual taxpayers.
This article will discuss the benefits of filing FBR tax returns in Pakistan and why individuals need to become filers.
1.Compliance with the law:
The first and most important benefit of filing tax returns in compliance with the law. In Pakistan, all individuals and companies must file annual FBR tax returns if they meet certain income thresholds. Failure to do so can result in penalties and legal action by the FBR. You can use online FBR tax calculator to make your calculation convenient and accurate.
2.Eligibility for financial products:
Being a filer can make it easier for individuals to access financial products such as loans, credit cards, and insurance policies. Banks and other financial institutions often require proof of income, which can be provided through tax returns. Without this documentation, obtaining financing or insurance may be more challenging.
3.Access to government services:
Filing tax returns can also make accessing government services such as passports, visas, and national identity cards easier. Individuals may sometimes be required to provide tax returns as proof of income or residency.
Potential employers, clients, and business partners see individuals who file tax returns as more credible and trustworthy. This can be especially important for entrepreneurs and small business owners who must establish credibility and trust to grow their businesses.
5.Reduced audit risk:
Filers are less likely to be audited by the FBR than non-filers. The FBR can verify filers’ income and assets through their tax returns. Non-filers, on the other hand, may be subject to more scrutiny and audits because the FBR has less information about their financial situation.
6.Contributing to the economy:
Filing tax returns is a way for individuals to contribute to the economy of Pakistan. Tax revenues fund government programs and services such as healthcare, education, and infrastructure development. By paying their fair share of taxes, filers are helping to support the growth and development of the country.
7.Personal financial management:
Finally, filing tax returns can be essential for personal financial management. By keeping track of income, expenses, and deductions, individuals can better understand their financial situation and make informed decisions about saving, investing, and spending.
In conclusion, becoming a filer in Pakistan has numerous benefits for individuals and the country. By complying with the law, gaining access to financial products and government services, establishing credibility, reducing audit risk, contributing to the economy, and managing personal finances, filers are making an essential contribution to the growth and development of Pakistan.