Karachi, November 6, 2023 – Pakistan has achieved a historic milestone as the number of active taxpayers in the country surpassed the 5-million mark for the first time.
This significant achievement was announced by the Federal Board of Revenue (FBR) based on official figures, marking a notable leap in the nation’s tax compliance landscape.
As of November 4, 2023, the FBR reported that the total number of active taxpayers for the tax year 2022 reached an impressive 5.03 million. This remarkable milestone demonstrates the country’s unwavering commitment to expanding its tax base and enhancing tax compliance.
The FBR issues the Active Taxpayers List (ATL) every Monday, and the current ATL for the tax year 2022 will remain in effect until February 29, 2024. Subsequently, the new ATL for the tax year 2023 will be issued on March 1, 2023. It will include the names of return filers who met the deadline for filing their declarations, as well as those who filed after the due date and paid the default surcharge, up until February 29, 2024.
This surge in active taxpayers is a testament to the relentless efforts of tax authorities to broaden the tax net and encourage tax compliance. These initiatives are designed to bring more taxable income within the formal tax system and further support ongoing campaigns aimed at improving overall tax compliance.
In the latest weekly update for the tax year 2022, an impressive 50,000 new tax return filers were seamlessly integrated into the ATL. This achievement underscores the effectiveness of the current tax compliance campaign and the positive response from taxpayers.
In addition to these efforts, the interim government has initiated a comprehensive drive to identify potential taxpayers, tasking the FBR with the rigorous assessment of individuals engaged in significant financial transactions who have yet to register in the tax system.
The growth in the ATL can also be attributed to recent government actions that incentivize individuals engaged in transactions outside the formal economy to formalize their tax responsibilities. Enhanced withholding income tax rates for non-ATL individuals serve as a compelling incentive to enter the structured tax framework. The increase in electricity costs, especially for non-ATL individuals, has further accelerated this shift towards tax compliance.
Membership in the ATL offers numerous benefits, including reduced income tax rates and specific exemptions from tax obligations. These incentives have attracted a growing number of individuals and businesses into the organized tax system.
The substantial increase in active taxpayers represents a significant milestone in Pakistan’s efforts to enhance revenue collection. By expanding the tax base and ensuring tax compliance, the government aims to distribute the tax burden more equitably among citizens and corporate entities. This will result in increased revenue allocation for critical sectors such as healthcare, education, and infrastructure, benefiting the entire nation.
The persistent efforts of the FBR to strengthen tax compliance through initiatives like the ATL and digital tax systems have yielded favorable outcomes. These actions have streamlined the tax collection process and elevated transparency within the tax framework.
With the FBR’s commitment to regular ATL updates, it is anticipated that the number of active taxpayers will continue to grow in the coming months. The government’s dedication to stimulating tax compliance, supported by stringent enforcement measures, is poised to fortify Pakistan’s comprehensive tax collection endeavors. This will make a substantial contribution to the nation’s sustainable economic development and prosperity.
