Karachi, March 1, 2024 – In a bid to fortify its tax collection efforts and bolster the country’s fiscal health, the Federal Board of Revenue (FBR) unveiled a new list on Friday, spotlighting 3.35 million active taxpayers for the tax year 2023.
These individuals successfully filed their annual income returns by the stipulated deadline or until February 29, 2024, after settling the required late fees and surcharges for submissions beyond the cutoff.
The recently released Active Taxpayers List (ATL) 2023 signifies a notable decrease compared to the preceding list updated until February 25, 2024, which boasted an impressive 5.73 million active taxpayers for the tax year 2022, marking a historic high. Official sources within the FBR anticipate an increase in the number of active taxpayers in the coming days, as the current list remains effective until February 28, 2025.
The surge witnessed in the last ATL, specifically for the tax year 2022, is considered a pivotal stride towards improving the tax-to-GDP ratio, a critical metric for evaluating a nation’s fiscal health. FBR officials express optimism about maintaining this positive trajectory, attributing it to their proactive campaign designed to integrate more individuals with taxable income into the formal tax system.
Inclusion in the ATL comes with tangible benefits for taxpayers. These include the privilege of enjoying lower tax rates on various financial transactions, serving as a compelling incentive for compliance. Despite these advantages, a significant number of individuals with taxable income continue to operate outside the formal tax system. Factors such as possession of undocumented wealth contribute to this phenomenon. The FBR openly acknowledges this challenge, recognizing the limited scope of the current active taxpayer base in comparison to the country’s vast population, which stands at 240 million.
The FBR’s concerted efforts to expand the tax net and boost compliance have been evident through various initiatives, including awareness campaigns, simplified tax procedures, and enhanced digital infrastructure. The aim is to create an environment that encourages individuals to voluntarily participate in the tax system, contributing to the overall economic development of the country.
While the current ATL reflects a decrease in the number of active taxpayers, the FBR remains steadfast in its commitment to fostering a culture of tax compliance. Officials believe that sustained efforts and targeted strategies will not only increase the active taxpayer base but also contribute to the country’s economic stability and progress.
As the FBR continues its mission to streamline tax collection processes and bridge the gap between taxpayers and the formal system, the evolving landscape of tax regulation and compliance in Pakistan is expected to witness further enhancements in the coming years. The FBR encourages citizens to play an active role in building a financially robust nation by fulfilling their tax obligations promptly and efficiently.
