Islamabad, July 8, 2024 – The Federal Board of Revenue (FBR) has reported a significant milestone, with nearly 5 million active taxpayers recorded for the tax year 2023 as of July 7, 2024.
According to the latest weekly Active Taxpayers List (ATL) released on Monday, the total number of active taxpayers has surged to 4.92 million, reflecting returns filed up to July 7, 2024. This marks an increase of 80,000 new active taxpayers within the week between July 1 and July 7 alone.
This surge represents a notable rise from the initial Active Taxpayers List (ATL) for 2023, which listed 3.35 million active taxpayers when launched on March 1, 2024. The FBR attributes this growth to a series of strategic initiatives aimed at enhancing tax compliance across Pakistan.
Central to this achievement is the FBR’s aggressive campaign targeting non-filers, highlighted by the threat to block mobile phone SIM cards of individuals failing to file tax returns. Implemented as part of the 2024-25 budget measures, this approach has proven effective in compelling previously non-compliant taxpayers to meet their fiscal obligations.
A pivotal moment in this compliance drive was the issuance of Income Tax General Order No. 1 on April 29, 2024. This directive mandated telecommunications companies to block SIM cards of individuals who had not filed income tax returns and wealth statements for 2023. The impact was significant, affecting over half a million non-filers and serving as a compelling incentive for compliance.
The FBR’s stringent stance forms a critical component of its broader strategy to expand Pakistan’s tax base, essential for improving the country’s tax-to-GDP ratio – a key indicator of fiscal health and economic efficiency. By linking tax compliance with mobile connectivity, the FBR has effectively incentivized taxpayers to regularize their status. Being on the ATL not only avoids SIM card disruptions but also qualifies individuals for reduced tax rates on financial transactions, further encouraging compliance.
Despite these advancements, challenges persist in achieving comprehensive tax coverage relative to Pakistan’s population of 240 million. To tackle these issues, the FBR continues to ramp up awareness campaigns, streamline tax procedures, and bolster digital infrastructure to facilitate easier compliance.
FBR officials emphasize that proactive measures are crucial in fostering a robust compliance culture, vital for Pakistan’s fiscal stability and sustainable economic growth. By embedding such a culture, the FBR aims to create a predictable environment conducive to economic planning and development.
With the ATL now accessible to the public, transparency is upheld, promoting greater participation in the tax framework and fostering citizen trust in a fair taxation system where compliance yields tangible benefits.
The surge in active taxpayers underscores Pakistan’s progress in tax compliance, driven by strategic policies and regulatory measures aimed at broadening the tax base and ensuring fiscal discipline in the nation’s economic landscape.