Islamabad – The Federal Board of Revenue (FBR) has reported the receipt of an impressive 1.824 million income tax returns for the tax year 2017 by the week ending February 10, 2019.
The weekly Active Taxpayers List (ATL), released on Monday, highlights a continuous increase in the number of returns filed, even as the deadline for the tax year 2017 ATL approaches on February 28, 2019.
The ATL for tax year 2017 has shown a notable surge, with an additional 8,000 returns filed during the last week alone. This uptick reflects a commendable level of compliance among taxpayers as the FBR’s efforts to encourage timely filing of returns continue to bear fruit.
Despite the imminent expiration of the ATL for tax year 2017, the FBR is slated to issue a new ATL for tax year 2018 on March 1, 2019. This list is expected to be the final ATL, as legislative measures have been enacted to discontinue the further issuance of weekly ATL.
The FBR’s current practice includes incorporating all return filers into the ATL, regardless of whether the annual return is filed after the due date. However, amendments introduced through the Finance Act, 2018, have restricted the inclusion of late filers in the ATL.
Section 182A of the Income Tax Ordinance, 2001, states that individuals failing to file a return of income by the specified due date or any extended date will not be included in the active taxpayers’ list for the respective tax year. This provision came into effect from the tax year 2018 onward, with the first ATL for this period scheduled to be issued on March 1, 2019, as per the Income Tax Rules, 2002. Additionally, those failing to file returns within the stipulated time frame will be disallowed from carrying forward any losses under Part VIII of Chapter IV.
The ATL holds significant importance as a document for availing reduced rates of withholding tax. It is a tool that aids in the government’s efforts to track and encourage tax compliance among individuals and entities. Furthermore, the government has implemented certain restrictions on non-filers, particularly concerning the purchase of immovable properties and motor vehicles, through the Finance Act, 2018.
As the FBR continues to streamline its processes and leverage technology for improved tax administration, the increasing number of returns filed reflects a positive trend in the country’s tax culture. The forthcoming ATL for tax year 2018 will serve as a comprehensive snapshot of active taxpayers, offering insights into the taxpaying landscape and aiding the government in making informed policy decisions.
