Karachi, February 12, 2024 – Active taxpayers for the tax year 2022 are granted an extended window to avail themselves of reduced tax rates, with the deadline set for February 29, 2024, announced the Federal Board of Revenue (FBR).
The tax authority is gearing up to unveil the new Active Taxpayers List (ATL) for the tax year 2023 on March 1, 2024.
The FBR routinely publishes the ATL on a weekly basis, incorporating new return filers for the relevant tax year. This practice is designed to facilitate individuals with reduced income tax rates on various transactions, encouraging compliance and bolstering the formal tax system.
The most recent ATL for the tax year 2022 was released on Monday, February 12, 2024, encompassing fresh return filers up to February 11, 2024. The ATL proudly revealed a record high of 5.65 million active taxpayers, signaling a significant milestone in the ongoing effort to boost the tax-to-GDP ratio – a pivotal indicator of fiscal health.
FBR officials express optimism about maintaining this positive trend, attributing it to an aggressive campaign aimed at bringing more individuals with taxable income into the formal tax fold. Inclusion in the ATL not only offers tangible benefits such as lower tax rates on various financial transactions but also serves as a strong incentive for individuals to comply with tax regulations.
Despite the advantages presented, a noteworthy number of individuals with taxable income still operate outside the formal tax system, often due to factors such as possessing undocumented wealth. Recognizing this challenge, the FBR openly acknowledges the limited scope of the current active taxpayer base when compared to the country’s vast population of 240 million.
In an official statement, the FBR emphasized, “Pakistan confronts a formidable challenge in its fiscal landscape characterized by rampant tax evasion, an alarmingly low tax-to-GDP ratio, and an inadequately low number of tax filers.” The adverse impact on revenue generation leads to insufficient funding for critical public services and socio-economic development initiatives.
To combat these challenges, the FBR has outlined a comprehensive strategy to identify and integrate individuals with taxable income into the system. Their nationwide drive encourages all eligible individuals and income earners to “get registered with the Tax system and file their return of income.”
While the surge in active taxpayers showcases the effectiveness of the FBR’s initiatives, sustained efforts are deemed crucial to tackling tax evasion, encouraging compliance, and unlocking the country’s true economic potential. Embracing transparency and accountability can pave the way for a more robust and inclusive economy, capable of addressing the needs of Pakistan’s growing population and securing a prosperous future for its citizens.
As the deadline for availing the tax benefits approaches, individuals are urged to seize the opportunity and contribute to the nation’s economic growth by becoming active participants in the formal tax system. The FBR’s commitment to fostering a culture of compliance remains steadfast, emphasizing the importance of a collaborative effort to build a financially resilient and thriving Pakistan.
