What is the difference between a filer and a non-filer?

Quick answer

A filer is a taxpayer who has filed their latest income-tax return and appears on the FBR's Active Taxpayer List; a non-filer has not. Filers pay significantly lower withholding-tax rates on banking transactions, property and vehicle purchases, dividends, and many other dealings, while non-filers face higher rates and some restrictions. Filing your annual return is what converts you to — and keeps you as — a filer.