Karachi, January 20, 2025 – The Federal Board of Revenue (FBR) has reached a significant achievement, with the number of active taxpayers in Pakistan surging to a record high of 6.07 million.
This milestone reflects a notable increase in taxpayer participation, as reported by the FBR on Monday.
The FBR issued the Active Taxpayers List (ATL) for the tax year 2024, based on tax returns filed up until January 19, 2025. The number of active taxpayers, at 6.07 million, marks an unprecedented high, surpassing the previous record of 5.34 million active taxpayers as of November 1, 2024.
This rise in the number of active taxpayers is attributed to several contributing factors. Sources within the FBR informed PkRevenue that one of the primary motivators for citizens filing their income tax returns is the looming restriction on various financial transactions for non-filers. These restrictions include a ban on purchasing motor vehicles, properties, and maintaining bank accounts for individuals who fail to file their tax returns, even if they have taxable income.
The FBR’s new system, which allows real-time updates to the ATL, represents a crucial shift from the previous practice of updating the list annually in March. Under the updated framework introduced through SRO 1638(I)/2024, the ATL is now refreshed daily, ensuring that individuals and companies who file their income tax returns are promptly recognized. This dynamic approach aligns with the FBR’s ongoing efforts to improve transparency and efficiency in Pakistan’s tax administration.
In order to incentivize timely filing, the FBR has introduced stringent penalties for non-compliance. These penalties include the disconnection of mobile phone SIM cards, suspension of utility services, and restrictions on foreign travel. However, exemptions exist for certain groups such as overseas Pakistanis holding National Identity Cards for Overseas Pakistanis (NICOPs), minors, students, and individuals traveling abroad for religious purposes, like Hajj or Umrah.
Further legislative measures are also in the pipeline. The FBR is working with the National Assembly on the Tax Laws (Amendment) Bill, 2024, which seeks to impose stricter restrictions on transactions involving immovable properties, vehicle purchases, and bank accounts for individuals with taxable income who are not registered in the tax system. This bill aims to close existing loopholes, broaden the tax base, and enhance revenue collection.
The updated ATL system, coupled with these new legislative measures, represents a significant modernization of Pakistan’s tax framework. By introducing real-time taxpayer recognition, incentivizing timely compliance, and imposing stringent penalties for defaulters, the FBR is taking crucial steps toward creating a more efficient, equitable, and transparent tax system. These initiatives are expected to strengthen Pakistan’s economy by fostering greater taxpayer engagement and improving revenue generation.