Karachi, January 8, 2025 – The Federal Board of Revenue (FBR) has disclosed concerning statistics, revealing that out of 13.45 million registered taxpayers, only 38% are part of the Active Taxpayers List (ATL). This highlights significant gaps in compliance and enforcement.
According to the FBR, the income tax ATL as of June 30, 2024, included 5.17 million taxpayers, marking a 30% increase from the 3.99 million recorded on June 30, 2023. Despite this growth, the proportion of taxpayers on the ATL remains low compared to the total registered taxpayer base.
The registered taxpayer population saw a substantial 36.2% growth, increasing from 9.87 million in 2023 to 13.45 million by June 2024. This growth reflects the FBR’s efforts to expand the tax net, with 3.574 million new taxpayers registered during the period.
Tax experts have criticized the FBR for its inability to translate the rising number of registrations into active compliance. They argue that despite the substantial increase in registered taxpayers, the FBR’s enforcement of return filing remains inadequate, preventing a corresponding rise in the ATL.
The FBR noted significant growth in taxpayer registration across various regional tax offices (RTOs) in Pakistan. RTO Multan achieved the highest increase, with a remarkable 59.2% growth in registered taxpayers, followed by RTO Bahawalpur and RTO Sahiwal. A detailed analysis shows that all four provinces are represented in the top 10 regions with the highest percentage increases in registered taxpayers.
However, seven RTOs recorded less than a 10% increase in registered taxpayers, indicating uneven performance across regions. This disparity highlights the need for targeted strategies to boost taxpayer compliance in underperforming areas.
While the increase in taxpayer registrations is a positive development, the FBR faces significant challenges in ensuring compliance and expanding the ATL. Bridging the gap between registered taxpayers and those on the ATL is crucial for improving revenue collection and achieving fiscal stability. Tax enforcement measures and incentives for compliance will be key to addressing this issue effectively.