Islamabad, October 24, 2024 – In a significant policy shift, the Federal Board of Revenue (FBR) has announced that it will now update the Active Taxpayers List (ATL) on a daily basis, departing from its previous practice of weekly updates.
This adjustment comes in the wake of sweeping reforms introduced through SRO 1638(I)/2024, dated October 18, 2024, aimed at enhancing transparency and ensuring real-time accuracy in taxpayer records.
The FBR, in its official statement released on Thursday, underscored that these changes were introduced under section 237 of the Income Tax Ordinance, 2001. “These amendments are aimed at improving the efficiency and responsiveness of the Active Taxpayers List system, allowing for more immediate recognition of compliance by taxpayers,” the statement read.
Previously, the ATL—a list critical for determining whether individuals and businesses are eligible for various tax benefits—was updated on a weekly basis, with the shift to an annual cycle occurring each March. However, under the new framework, any taxpayer who files their Income Tax Returns (ITR) for the current tax year, 2024, by the stipulated deadline or within any granted extension, will be included in the ATL immediately. This move is expected to streamline tax compliance processes and eliminate the delays previously experienced in acknowledging a taxpayer’s active status.
Additionally, taxpayers who fail to file their returns within the due or extended date will still have an opportunity to be included in the ATL, provided they pay the surcharge stipulated under section 182A of the Income Tax Ordinance. This provision serves as a safety net for taxpayers who may have missed the initial deadlines, allowing them to regain their status as active taxpayers in a timely manner.
This overhaul marks a pivotal transformation in FBR’s operational strategies. By shifting to daily updates, the FBR aims to bolster taxpayer confidence by ensuring that their compliance is recognized immediately, thus facilitating smoother and more transparent interactions with the tax authority. The new system will also reduce the administrative burden on both taxpayers and the FBR, as updates are processed in real-time.
These reforms represent a concerted effort by the FBR to modernize its tax administration and foster greater efficiency. By enhancing the agility of its ATL system, the FBR reaffirms its commitment to fostering a taxpayer-friendly environment, ultimately promoting higher levels of compliance across the board.