Karachi, September 16, 2024 – The Federal Board of Revenue (FBR) announced on Monday that the number of active taxpayers in Pakistan has increased to 5.6 million by the week ending September 15, 2024. This marks a notable rise from the 5.54 million active taxpayers recorded in the previous week, reflecting an addition of 60,000 new taxpayers to the Active Taxpayers List (ATL).
The FBR publishes the ATL on a weekly basis to reflect the current number of individuals and businesses who have filed their tax returns. The most recent ATL, issued on March 1, 2024, was based on tax returns filed for the tax year 2023. At the time, the list comprised 3.35 million active taxpayers. The significant increase over the past months demonstrates the success of various measures taken to enhance tax compliance.
Impact of Finance Act 2024 on Tax Base Expansion
The expansion in the tax base is largely attributed to higher tax rates and stricter measures introduced in the Finance Act 2024. According to FBR officials, these reforms have pushed many previously non-compliant individuals and businesses to file their tax returns. The higher penalties for non-filers, combined with incentives for timely submission, have played a key role in boosting the number of active taxpayers.
“The rise in active filers reflects our ongoing efforts to widen the tax net and promote compliance,” said a senior official at the FBR. “We aim to create a culture where tax filing is the norm, not the exception.”
Government’s Ambitious Target: 10 Million Taxpayers
The government has set an ambitious goal of increasing the number of active taxpayers to 10 million as part of its broader strategy to improve Pakistan’s tax-to-GDP ratio. Expanding the tax base is viewed as crucial for enhancing fiscal transparency, promoting economic stability, and reducing the nation’s dependency on external borrowing. By encouraging more individuals and businesses to meet their tax obligations, the FBR is playing a vital role in securing Pakistan’s financial future.
ATL Updates and Upcoming Filing Deadlines
Since the initial publication of the ATL, the FBR has consistently provided weekly updates, showing a steady rise in the number of taxpayers. The latest increase is seen as a positive indicator of the reforms that have been implemented to strengthen tax collection.
Looking forward, the FBR expects the number of active taxpayers to grow further as the September 30, 2024, deadline for filing income tax returns for the current year approaches. With the introduction of tougher penalties for late filers, officials anticipate that more individuals and businesses will file their returns before the deadline.
A Promising Development for Pakistan’s Fiscal Future
The recent surge in active taxpayers is a promising development for Pakistan’s fiscal management, signaling the success of the FBR’s efforts to enforce tax compliance. As the country moves towards a more transparent and robust tax system, the FBR remains committed to expanding the tax base and ensuring adherence to tax laws across the board.
This achievement highlights the government’s strategy to strengthen fiscal responsibility and promote sustainable economic growth, with a focus on self-reliance and reducing the fiscal deficit.
