Islamabad, August 15, 2023 – In Pakistan, there has been a substantial surge in enrollment in the Active Taxpayers List (ATL), with the number of participants reaching 4.38 million.
This increase can be attributed to strategies that compelled non-compliant individuals and businesses to become part of the formal documentation system.
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The substantial rise in the count of taxpayers is the result of the government’s persistent efforts to foster tax adherence while discouraging non-filers. The most recent update to the ATL, which accounts for returns submitted up to August 15, 2023, and was released on Tuesday, indicated that the Federal Board of Revenue (FBR) received 60,000 returns in the previous week.
This notable surge in tax return submissions can be linked to a significant measure introduced through the Finance Act of 2023. This act introduced a provision for withholding tax on cash withdrawals from banks, which became operational on July 1, 2023. This step provided an incentive for taxpayers to promptly fulfill their tax responsibilities.
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The FBR updates the ATL on a weekly basis, encompassing the names of individuals and businesses that have filed their tax returns within that specific week. Being a part of the ATL offers taxpayers various advantages, including reduced income tax rates and specific exemptions from tax payments.
The upswing in the quantity of active taxpayers is a favorable advancement for Pakistan’s revenue collection endeavors. By broadening the tax base and ensuring tax conformity, the government aims to achieve a more equitable distribution of the tax load among citizens and corporations. The revenue stemming from these efforts can be directed towards crucial sectors such as healthcare, education, and infrastructure, ultimately benefiting the entire nation.
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The FBR’s consistent drive to foster tax adherence through initiatives like the ATL and digital tax systems has yielded positive outcomes in recent times. These actions have contributed to an enhanced tax collection process and increased transparency within the tax framework.
Given the FBR’s unwavering commitment to regular ATL updates, it is expected that the number of active taxpayers will continue to climb in the upcoming months. The government’s dedication to encouraging tax conformity, coupled with effective enforcement measures, is projected to further augment Pakistan’s comprehensive tax collection endeavors, thus contributing to the nation’s sustainable economic progression and growth.
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