Karachi, January 1, 2025 – The Federal Board of Revenue (FBR) issued its updated Active Taxpayers List (ATL) for the tax year 2024, showcasing an impressive 5.89 million active taxpayers.
This marks a significant increase compared to the 5.34 million active taxpayers recorded on November 1, 2024. The surge in numbers is attributed to companies meeting their income tax return filing deadline of December 31, 2024.
A Shift to Real-Time Taxpayer Recognition
The ATL now operates under an updated framework introduced via amendments in SRO 1638(I)/2024. Unlike previous years, when the list was released annually in March, the new system ensures the ATL is updated daily, providing real-time recognition to individuals and companies filing their income tax returns (ITRs).
“This dynamic system reflects FBR’s commitment to fostering transparency and efficiency in tax administration,” stated an FBR spokesperson. Taxpayers who file on time or within approved extensions are promptly added to the list. Those filing late can regain their active status by paying a prescribed surcharge under Section 182A of the Income Tax Ordinance.
Measures to Boost Compliance
To encourage timely filing, the FBR has introduced strict penalties for non-compliance. These include:
• Disconnection of mobile phone SIM cards.
• Suspension of utility services.
• Restrictions on foreign travel.
Such measures aim to foster a culture of compliance while deterring tax evasion. However, exemptions are provided for specific groups, including overseas Pakistanis holding NICOPs, minors, students, and individuals traveling abroad for religious purposes like Hajj or Umrah.
Legislative Enhancements in the Pipeline
The FBR anticipates further growth in the ATL through the Tax Laws (Amendment) Bill, 2024, currently under review by the National Assembly. The proposed bill seeks to restrict certain transactions for individuals with taxable income who are not registered in the tax net. These restrictions would apply to:
• Transactions involving immovable property.
• Vehicle purchases.
• Maintenance of bank accounts.
By tightening loopholes and broadening the tax base, the bill aims to bolster revenue collection and encourage non-filers to register.
A Modernized Tax System
The revamped ATL system represents a crucial step in modernizing Pakistan’s tax ecosystem. By offering real-time updates, incentivizing compliance, and imposing firm penalties for defaulters, the FBR is building trust between taxpayers and the state. These efforts aim to create a more equitable and transparent tax structure, supporting Pakistan’s broader economic goals.