Pakistan’s Active Taxpayers List (ATL) has seen a significant increase, reaching 4.32 million, owing to measures that compelled non-compliant individuals and businesses to join the documentation system.
This surge in the number of taxpayers is attributed to the government’s efforts to encourage tax compliance and discourage non-filers.
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The latest ATL update, based on returns filed up to August 6, 2023, and issued on Monday, revealed that the Federal Board of Revenue (FBR) received 60,000 returns during the last week. This increase in tax returns filed can be credited to a key measure introduced by the Finance Act of 2023. The act implemented a provision for withholding tax on cash withdrawals from the banking system, which became effective on July 1, 2023. This step incentivized taxpayers to fulfill their tax obligations promptly.
The ATL is updated weekly by the FBR and includes the names of individuals and businesses that have filed their tax returns within that specific week. Being part of the ATL offers several benefits to taxpayers, such as lower income tax rates and certain exemptions from tax payments.
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The rise in the number of active taxpayers is a positive development for Pakistan’s revenue collection efforts. By broadening the tax base and ensuring tax compliance, the government aims to achieve a fair distribution of the tax burden among citizens and corporations. The revenue generated from these measures can be channeled towards critical sectors like healthcare, education, and infrastructure, ultimately benefiting the entire nation.
The FBR’s consistent efforts to promote tax compliance through initiatives like the ATL and digital tax systems have yielded positive results in recent years. These measures have contributed to improved tax collection and greater transparency in the tax system.
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With the FBR’s commitment to updating the ATL regularly, it is expected that the number of active taxpayers will continue to rise in the coming months. The government’s dedication to promoting tax compliance, along with effective enforcement measures, is expected to further enhance Pakistan’s overall tax collection efforts, contributing to the country’s sustainable economic growth and development.
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