Islamabad, February 10, 2025 – The Federal Board of Revenue (FBR) has announced a record-breaking 6.26 million active taxpayers ahead of the implementation of stringent measures aimed at curbing tax evasion.
This unprecedented rise in tax compliance underscores the mounting pressure on individuals with taxable income to fulfill their legal obligations or face severe consequences.
The latest Active Taxpayers List (ATL), published by the FBR based on income tax returns filed for the tax year 2024 up until February 9, 2025, reflects an impressive 17.23% increase compared to the 5.34 million taxpayers recorded at the ATL’s initial release on November 1, 2024. FBR officials attribute this surge to the imminent enforcement of tough restrictions designed to penalize non-filers who continue to withhold income and asset declarations.
On December 18, 2024, the government introduced a landmark tax bill in the National Assembly, outlining sweeping restrictions on non-filers across various financial and economic domains. The FBR has played a pivotal role in formulating and executing these measures to bolster revenue collection and widen the tax net.
Key Restrictions on Non-Filers as Enforced by the FBR:
To fortify compliance and deter tax evasion, the government, in collaboration with the FBR, has introduced stringent constraints under a newly proposed Section 114C of the tax law. These provisions bar non-filers from participating in critical economic transactions, including:
1. Vehicle Transactions – Non-filers will be prohibited from booking, purchasing, or registering motor vehicles. The FBR has directed vehicle manufacturers and excise authorities to ensure compliance.
2. Property Dealings – Non-filers will be restricted from executing high-value property transactions. Registrars and revenue departments will be mandated to verify tax status before processing transfers.
3. Financial Securities and Mutual Funds – The FBR has instructed brokerage firms, banks, and mutual fund operators to block transactions for non-filers, curbing their ability to invest in financial instruments.
4. Banking Limitations – Banks will be barred from opening current or savings accounts for non-filers, except for basic ‘Asaan’ accounts. The FBR will also impose withdrawal limits to curtail cash transactions by non-compliant individuals.
To enhance efficiency, the FBR has modernized its ATL updating mechanism. Previously refreshed annually in March, the list is now updated daily under SRO 1638(I)/2024, ensuring real-time inclusion of new filers. This shift underscores the FBR’s commitment to transparency and fiscal discipline.
To further incentivize compliance, the FBR has instituted punitive measures against persistent non-filers, including the deactivation of mobile SIM cards, suspension of utility services, and travel restrictions. However, exemptions are in place for specific groups such as overseas Pakistanis with NICOPs, minors, students, and individuals traveling abroad for religious purposes like Hajj or Umrah.
The FBR’s intensified enforcement strategy marks a decisive step toward strengthening Pakistan’s tax administration and fostering a culture of fiscal responsibility. As the government tightens its grip on tax evasion, individuals and businesses alike are urged to ensure compliance with the evolving regulatory framework.