Higher surcharges for late filers under the Finance Act, 2026 drive a record increase in the Federal Board of Revenue’s Active Taxpayers List.
ISLAMABAD: The number of active taxpayers in Pakistan has reached a record 8.30 million, according to the latest data released by the Federal Board of Revenue (FBR) on Thursday, marking a significant increase following amendments introduced through the Finance Act, 2026.
The FBR updates its Active Taxpayers List (ATL) on a daily basis, with tax officials attributing the sharp rise primarily to stricter financial penalties imposed on taxpayers seeking inclusion in the list after missing the statutory deadline for filing income tax returns.
According to FBR sources, the Finance Act, 2026 has substantially increased the surcharge payable by taxpayers who wish to regain active taxpayer status after failing to submit their income tax returns within the prescribed time.
Under the revised provisions, companies are now required to pay a surcharge of Rs100,000, up from the previous Rs20,000. For Associations of Persons (AOPs), the surcharge has increased to Rs50,000 from Rs10,000.
Individual taxpayers have witnessed the steepest increase, with the surcharge rising to Rs25,000 compared with the earlier amount of Rs1,000.
Tax officials said the significantly higher surcharge has prompted many taxpayers to file their returns on time in order to retain their active taxpayer status and avoid the increased financial burden associated with late compliance.
The Finance Act, 2026, however, also provides relief for certain individual taxpayers. Under the amended law, an individual will not be required to pay the surcharge if they submit an undertaking to the concerned Commissioner declaring that they will not purchase, acquire or otherwise obtain ownership or beneficial interest in any property for a period of six months from the date of furnishing the undertaking in the prescribed manner.
The Active Taxpayers List is one of the FBR’s principal compliance mechanisms. Taxpayers included in the ATL benefit from lower withholding tax rates on a broad range of financial and commercial transactions, while non-active taxpayers are subject to higher tax deductions on banking transactions, property transfers, vehicle registration and various other taxable activities.
Tax experts believe the record number of 8.30 million active taxpayers demonstrates the effectiveness of the government’s strategy to expand the tax base through stronger enforcement measures and enhanced compliance incentives. They note that continued improvements in tax documentation and digital filing systems will be essential to sustaining growth in the number of active taxpayers and strengthening Pakistan’s revenue collection.