FBR reaches historic 7.5 million active taxpayers

FBR - Taxation

ISLAMABAD – The Federal Board of Revenue (FBR) has achieved a historic milestone, announcing that the number of active taxpayers in Pakistan has reached 7.5 million as of July 31, 2025.

This is the highest ever total on the Active Taxpayers List (ATL), marking a major breakthrough in the country’s drive toward tax compliance.

This surge is not just statistical — it’s a sign that FBR’s recent enforcement efforts are delivering results. Over the past two weeks alone, nearly 100,000 new individuals have filed returns and secured their place on the ATL, signaling growing awareness and urgency among citizens to become active taxpayers before facing penalties.

The driving force behind this growth is the government’s aggressive policy reform, especially the introduction of Section 114C under the 2025–26 Federal Budget. This new provision in the Income Tax Ordinance, 2001 gives FBR wide-ranging powers to penalize non-filers. Those who fail to register as active taxpayers are now facing serious restrictions, including:

• A ban on buying or registering luxury vehicles

• Ineligibility for purchasing or registering real estate

• Limits on investing in mutual funds, stocks, or securities

• Restrictions on large-scale bank withdrawals

These measures are proving effective, forcing chronic non-filers to take action or risk exclusion from major economic activities. The FBR has made it clear: either become an active taxpayer or be cut off from key financial privileges.

For those already on the ATL, benefits include reduced withholding taxes and hassle-free financial transactions. For others still on the sidelines, the window is closing fast. As Pakistan’s tax net continues to expand rapidly, joining the list is no longer optional — it’s essential.