Pakistan's withholding tax regime penalizes non-filers with higher rates on dozens of transaction types. Filing an income tax return and maintaining ATL status is often cheaper than paying elevated WHT all year.
Common WHT differences
Bank cash withdrawals, profit on debt, dividends, property sales, and contract payments often have separate filer and non-filer rates published by FBR each finance act. Salaried employees who skip filing may still pay more tax at source on savings and transactions.
Becoming an active filer through timely FBR return filing is the structural fix — not ad-hoc exemptions.