Karachi, April 1, 2024 – The Federal Board of Revenue (FBR) disclosed on Monday that the count of Active Taxpayers for tax year 2023 has surged to 3.83 million as of the end of March 2024.
The FBR, in its latest update on April 1, 2024, issued the revised Active Taxpayers List (ATL) for the tax year. The data revealed that approximately 480,000 taxpayers acquired active status during the month of March 2024 alone.
It’s worth noting that the FBR initially released the new ATL for the tax year 2023 on March 1, 2024, which exhibited the names of 3.35 million active taxpayers.
This surge in the ATL for the tax year 2023 underscores the relentless efforts of the FBR to broaden the tax base and enhance tax compliance nationwide.
The increase observed in the ATL is deemed a significant advancement towards bolstering the tax-to-GDP ratio, a pivotal metric reflecting a country’s fiscal health. FBR officials are optimistic about sustaining this positive trajectory, attributing it to their proactive initiatives aimed at integrating more individuals with taxable income into the formal tax framework.
Inclusion in the ATL offers tangible advantages for taxpayers, including access to reduced tax rates on various financial transactions. These incentives serve as potent drivers for compliance. However, despite these perks, a notable portion of individuals with taxable income persists in operating outside the formal tax domain, partly due to possession of unrecorded wealth.
The FBR openly acknowledges this challenge, recognizing the limited coverage of the current active taxpayer base in comparison to the vast population of 240 million in the country. Nevertheless, the FBR remains resolute in its determination to expand the tax net and enhance compliance through extensive awareness campaigns, streamlined tax procedures, and upgraded digital infrastructure.
Fostering an environment conducive to voluntary tax adherence lies at the heart of the FBR’s strategy. By encouraging individuals to actively participate in the tax system, the FBR aims not only to augment revenue collection but also to stimulate nationwide economic development.
Despite the recent expansion in the ATL, challenges persist, and the FBR acknowledges the necessity for sustained endeavors and targeted strategies to further augment the active taxpayer base. The agency maintains an unwavering commitment to cultivating a culture of tax compliance, firmly believing that such endeavors will significantly contribute to the country’s economic stability and progress.
