Islamabad, April 29, 2024 – In a significant development on Monday, the Federal Board of Revenue (FBR) published the names of 4.07 million citizens who have successfully filed their income tax returns, thereby securing their positions on the Active Taxpayers List (ATL) for the tax year 2023.
The FBR included the names of those persons who filed their income tax returns for tax year 2023 by April 28, 2024 and paid default surcharge for inclusion in the ATL.
Earlier on March 1, the FBR had initially released the ATL for the tax year 2023, featuring 3.35 million compliant individuals and companies. The notable increase to 4.07 million over the past few months represents a significant surge, highlighting the effectiveness of the FBR’s ongoing efforts to widen the tax base and enhance compliance across Pakistan.
The ATL’s expansion is a crucial step toward improving Pakistan’s tax-to-GDP ratio, an essential indicator of fiscal health and economic efficiency. This upward trend in active taxpayer numbers is seen as a pivotal development by FBR officials, who attribute this success to proactive policies focused on incorporating more individuals with taxable income into the formal economy.
Being listed in the ATL brings several benefits for taxpayers, including eligibility for reduced tax rates on various financial transactions, which serve as a strong incentive for tax compliance. However, despite these incentives, there remains a significant number of taxable individuals who are not part of the formal tax system, often due to holding unrecorded wealth.
The FBR acknowledges the gap in coverage of the active taxpayer base when compared to Pakistan’s total population of 240 million. This discrepancy underscores the challenges in achieving comprehensive tax compliance and the necessity of expanding the tax net.
In response to these challenges, the FBR is intensifying its efforts through widespread awareness campaigns, simplifying tax procedures, and enhancing the digital infrastructure to facilitate easier compliance. The aim is to foster a culture where voluntary participation in the tax framework becomes more commonplace, thereby driving broader economic growth.
Moreover, the FBR’s strategies are designed not only to boost immediate tax collection but also to lay a foundation for sustainable economic progress by embedding a robust compliance culture. This cultural shift is expected to stabilize and strengthen fiscal structures and provide a more predictable environment for economic planning and development.
Despite the positive strides made with the recent expansion of the ATL, the FBR recognizes the ongoing challenges and stresses the need for continuous efforts and targeted strategies to further increase the number of active taxpayers. The agency remains committed to its mission of fostering a compliant society, believing that a substantial increase in tax compliance rates will play a crucial role in the country’s broader economic stability and advancement.
The FBR’s list of active taxpayers is publicly accessible, aiming to maintain transparency and encourage more citizens to fulfill their tax obligations. This transparency not only helps in building trust between taxpayers and the government but also promotes a fair taxation system where compliance leads to tangible benefits. As the FBR continues to push for higher compliance, the economic landscape of Pakistan is set to witness substantial improvements, aligning with broader developmental goals.
