Karachi, October 30, 2023 –Active Taxpayers List (ATL) in Pakistan has reached a historic high of 4.98 million taxpayers as of October 29, 2023, according to official data released by the Federal Board of Revenue (FBR).
This figure demonstrates a substantial increase from the previous week’s count of 4.93 million.
The surge in the ATL reflects the relentless efforts of tax authorities to expand the tax base and promote tax compliance. These initiatives aim to bring more taxable income into the formal tax net, ultimately contributing to the success of ongoing campaigns focused on enhancing tax compliance.
In the most recent weekly update for the tax year 2022, an impressive 50,000 new tax return filers were seamlessly integrated into the ATL. This achievement reaffirms the effectiveness of the current tax compliance campaign.
The interim government has also initiated a comprehensive drive to identify potential taxpayers, tasking the FBR with the rigorous assessment of individuals engaged in significant financial transactions who are yet to register in the tax system.
The growing ATL can also be attributed to recent government actions that encourage individuals involved in transactions outside the formal economy to formalize their tax responsibilities. Enhanced withholding income tax rates for non-ATL individuals serve as a compelling incentive to enter the structured tax framework. The increase in electricity costs, especially for non-ATL individuals, has further accelerated this shift.
Membership in the ATL offers numerous benefits, including reduced income tax rates and specific exemptions from tax obligations. These incentives have attracted a growing number of individuals and businesses into the organized tax system.
The significant increase in active taxpayers represents a substantial leap in Pakistan’s quest for enhanced revenue collection. By broadening the tax base and ensuring tax compliance, the government aims to distribute the tax burden more equitably among citizens and corporate entities. This will result in increased revenue allocation for critical sectors such as healthcare, education, and infrastructure, benefiting the entire nation.
The persistent efforts of the FBR to strengthen tax compliance through initiatives like the ATL and digital tax systems have yielded favorable outcomes. These actions have streamlined the tax collection process and elevated transparency within the tax framework.
With the FBR’s commitment to regular ATL updates, it is anticipated that the number of active taxpayers will continue to grow in the coming months. The government’s dedication to stimulating tax compliance, supported by stringent enforcement measures, is poised to fortify Pakistan’s comprehensive tax collection endeavors. This will make a substantial contribution to the nation’s sustainable economic development and prosperity.
