Karachi, January 8, 2024 – The Federal Board of Revenue (FBR) announced on Monday that it has successfully registered a record-breaking 5.45 million active taxpayers.
This achievement marks a significant milestone in the government’s ongoing commitment to expanding the tax base and improving revenue collection in Pakistan.
The latest update from the FBR comes as part of their efforts to enhance fiscal responsibility among citizens and businesses. The weekly release of the Active Taxpayers List (ATL) revealed the remarkable increase in the number of individuals and corporate entities who filed their income and asset returns by January 7, 2024, for the tax year 2022. This reflects a commendable demonstration of timely compliance or payment of late filing surcharges by taxpayers aiming to secure their position on the ATL.
The surge in active taxpayers reflects the government’s dedication to broadening the tax net, a crucial step towards augmenting revenue collection and boosting the tax-to-GDP ratio. Officials at the FBR anticipate a further increase in these numbers as their intensive campaign to bring individuals with taxable income under the tax umbrella gains momentum.
Inclusion in the ATL not only signifies compliance but also offers tangible benefits, including lower tax rates on various financial transactions. Despite these advantages, a notable portion of individuals with taxable income continues to operate outside the formal tax system, often due to factors such as undocumented wealth.
Recognizing the existing challenges, the FBR openly acknowledged the limited scope of the current active taxpayer base when compared to the country’s vast population of 240 million. In a statement, they highlighted, “Pakistan confronts a formidable challenge in its fiscal landscape characterized by rampant tax evasion, an alarmingly low tax-to-GDP ratio, and an inadequately low number of tax filers. The country’s revenue generation suffers significantly, resulting in insufficient funding for critical public services and vital socio-economic development initiatives.”
To address these issues, the FBR has outlined a comprehensive strategy to identify and integrate individuals with taxable income into the system. Their nationwide drive aims to encourage all eligible individuals and income earners to “get registered with the Tax system and file their return of income.”
The surge in active taxpayers is not only a testament to the effectiveness of the FBR’s initiatives but also offers a glimpse into a brighter future for Pakistan’s fiscal health. However, sustained efforts are deemed crucial to tackle tax evasion, encourage compliance, and unlock the country’s true economic potential. By embracing transparency and accountability, Pakistan can pave the way for a more robust and inclusive economy, capable of catering to the needs of its growing population and securing a prosperous future for its citizens.
