Pakistan witnessed significant increase in Active Taxpayers with over 40,000 income tax returns filed in a single week, to high high of 4.26 million.
The Federal Board of Revenue (FBR) released official data on Monday, indicating that the number of taxpayers on the Active Taxpayers List (ATL) reached a record high of 4.26 million by the week ending July 30, 2023, compared to 4.22 million at the end of the previous week.
This surge in the number of tax returns filed can be attributed to the government’s efforts to encourage tax compliance and discourage non-filers. One of the key measures implemented was the Finance Act of 2023, which introduced a provision for withholding tax on cash withdrawals from the banking system. This measure, which came into effect on July 1, 2023, incentivized taxpayers to fulfill their tax obligations promptly.
The ATL is updated by the FBR on a weekly basis, including the names of individuals and businesses who have filed their tax returns within that specific week. Being part of the ATL offers several benefits to taxpayers, such as lower income tax rates and certain exemptions from tax payments.
The increase in the number of active taxpayers is a positive development for Pakistan’s revenue collection efforts. By broadening the tax base and ensuring tax compliance, the government aims to achieve a fair distribution of the tax burden among citizens and corporations. The revenue generated from these measures can be channeled towards critical sectors like healthcare, education, and infrastructure, ultimately benefiting the entire nation.
The FBR’s consistent efforts to promote tax compliance through initiatives like the ATL and digital tax systems have yielded positive results in recent years. These measures have contributed to improved tax collection and greater transparency in the tax system.
As the FBR continues to update the ATL regularly, it is expected that the number of active taxpayers will continue to rise in the coming months. The government’s commitment to promoting tax compliance, coupled with effective enforcement measures, is expected to further enhance Pakistan’s overall tax collection efforts, contributing to the country’s sustainable economic growth and development.
