Karachi, May 20, 2024 – The Federal Board of Revenue (FBR) reported on Monday that the number of active taxpayers for the tax year 2023 has surged to 4.30 million.
This update was issued in the FBR’s weekly Active Taxpayers List (ATL), which reflects returns filed up to May 19, 2024.
Notably, around 80,000 individuals filed their returns and enrolled in the ATL over the past week, marking a significant increase from the previous week’s 4.22 million active taxpayers.
This unprecedented rise in tax registrations is largely attributed to growing concerns over the potential blocking of SIM cards for non-filers. The recent directive from the FBR, outlined in Income Tax General Order No. 1 issued on April 29, 2024, has been a key driver behind the surge. This order targets over half a million non-filers, mandating telecommunications companies to block the SIM cards of those who fail to file income tax returns and wealth statements for the year 2023.
The FBR’s firm stance is part of a broader strategy to expand Pakistan’s tax base, a crucial step toward improving the country’s tax-to-GDP ratio—an essential indicator of fiscal health and economic efficiency. This initiative has significantly boosted the ATL, which has grown from 3.35 million in March to 4.30 million by May.
By linking tax compliance with mobile connectivity, the FBR has effectively incentivized taxpayers to regularize their status. Inclusion in the ATL not only prevents the inconvenience of disabled SIM cards but also qualifies individuals for reduced tax rates on various financial transactions, further encouraging compliance.
Despite this progress, the disparity between the active taxpayer base and Pakistan’s total population of 240 million highlights the ongoing challenges in achieving comprehensive tax coverage. To address these issues, the FBR is intensifying its outreach through awareness campaigns, simplifying tax procedures, and enhancing digital infrastructure to facilitate the compliance process.
FBR officials believe that such proactive measures are fundamental for fostering a robust compliance culture, which is essential for Pakistan’s fiscal stability and sustainable economic growth. By ingraining such a culture, the FBR aims to provide a more predictable environment for economic planning and development.
With the ATL now publicly accessible, the FBR aims to uphold transparency and encourage greater participation in the tax framework. This transparency is intended to foster trust among citizens and promote a fair taxation system where compliance yields tangible benefits.
As the deadline for SIM blocking approaches, the FBR continues to strive for higher compliance rates, crucial for the country’s broader economic stability and advancement. The FBR’s recent measures and strategic initiatives are expected to result in significant improvements in tax compliance, thereby contributing to Pakistan’s economic prosperity.
This surge in active taxpayers underscores the impact of the FBR’s innovative approach to tax enforcement and the importance of continued efforts to expand the tax base. By maintaining and building upon these initiatives, Pakistan can look forward to a more stable and robust economic future.