Karachi, March 25, 2024 – The Federal Board of Revenue (FBR) has announced a significant milestone with the addition of 400,000 new active taxpayers in March 2024.
This development underscores the FBR’s ongoing efforts to expand the tax base and improve tax compliance across Pakistan.
As of March 24, 2024, the total number of active taxpayers has reached 3.75 million, based on returns filed for the tax year 2023. This information was released by the Federal Board of Revenue (FBR) on Monday.
The release of the new Active Taxpayers List (ATL) for the tax year 2023 contributed to this growth, with 3.35 million active taxpayers included. The FBR’s initiatives aimed at enhancing tax compliance and broadening the tax net have played a pivotal role in this notable increase.
The surge observed in the ATL for the tax year 2023 is seen as a significant stride towards improving the tax-to-GDP ratio, a key indicator of a nation’s fiscal health. FBR officials express confidence in maintaining this positive momentum, citing their proactive campaign to integrate more individuals with taxable income into the formal tax system.
Inclusion in the ATL offers tangible benefits for taxpayers, including access to lower tax rates on various financial transactions. These incentives serve as powerful motivators for compliance. However, despite these advantages, a considerable number of individuals with taxable income continue to operate outside the formal tax system, partly due to possession of undocumented wealth.
The FBR openly acknowledges this challenge, recognizing the limited scope of the current active taxpayer base compared to the country’s vast population of 240 million. Nevertheless, the FBR remains steadfast in its commitment to expanding the tax net and enhancing compliance through awareness campaigns, simplified tax procedures, and improved digital infrastructure.
Creating an environment conducive to voluntary tax compliance is central to the FBR’s strategy. By encouraging individuals to participate in the tax system, the FBR aims not only to increase revenue collection but also to stimulate economic development nationwide.
Despite the recent expansion in the ATL, challenges persist, and the FBR acknowledges the need for sustained efforts and targeted strategies to further increase the active taxpayer base. The agency remains unwavering in its dedication to fostering a culture of tax compliance, believing that such efforts will contribute significantly to the country’s economic stability and progress.
