ISLAMABAD, July 16, 2024 (PkRevenue.com) – The Federal Board of Revenue (FBR) has announced a significant milestone, revealing that the number of active taxpayers for the tax year 2023 has surpassed 5 million.
This development, reported in the weekly Active Taxpayers List (ATL) updated up to July 15, 2024, marks an increase of 80,000 new active taxpayers in just a week.
The surge represents a remarkable rise from the initial ATL for 2023, which listed 3.35 million active taxpayers when it was first launched on March 1, 2024. The FBR attributes this growth to a series of strategic initiatives designed to enhance tax compliance across Pakistan.
A key driver of this achievement has been the FBR’s robust campaign targeting non-filers. Central to this effort was the threat to block mobile phone SIM cards of individuals who failed to file tax returns. Implemented as part of the 2024-25 budget measures, this approach has proven effective in compelling previously non-compliant taxpayers to fulfill their fiscal responsibilities.
A pivotal moment in this compliance drive was the issuance of Income Tax General Order No. 1 on April 29, 2024. This directive mandated telecommunications companies to block SIM cards of individuals who had not filed income tax returns and wealth statements for 2023. The impact was immediate and significant, affecting over half a million non-filers and serving as a compelling incentive for compliance.
The FBR’s stringent stance forms a critical component of its broader strategy to expand Pakistan’s tax base, essential for improving the country’s tax-to-GDP ratio – a key indicator of fiscal health and economic efficiency. By linking tax compliance with mobile connectivity, the FBR has effectively incentivized taxpayers to regularize their status. Being on the ATL not only avoids SIM card disruptions but also qualifies individuals for reduced tax rates on financial transactions, further encouraging compliance.
Despite these advancements, challenges persist in achieving comprehensive tax coverage relative to Pakistan’s population of 240 million. To tackle these issues, the FBR continues to ramp up awareness campaigns, streamline tax procedures, and bolster digital infrastructure to facilitate easier compliance.
FBR officials emphasize that proactive measures are crucial in fostering a robust compliance culture, vital for Pakistan’s fiscal stability and sustainable economic growth. By embedding such a culture, the FBR aims to create a predictable environment conducive to economic planning and development.
With the ATL now accessible to the public, transparency is upheld, promoting greater participation in the tax framework and fostering citizen trust in a fair taxation system where compliance yields tangible benefits.
The surge in active taxpayers underscores Pakistan’s progress in tax compliance, driven by strategic policies and regulatory measures aimed at broadening the tax base and ensuring fiscal discipline in the nation’s economic landscape.