Islamabad, August 21, 2023 – In a significant milestone for Pakistan’s revenue collection efforts, the Federal Board of Revenue (FBR) has announced that the number of active taxpayers in the country has reached a record high of 4.43 million.
This revelation came as the FBR issued its weekly Active Taxpayers List (ATL) on Monday, which included the names of individuals and businesses that filed their returns for the tax year 2022 up to August 20, 2023.
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This remarkable increase in active taxpayers can be attributed to strategic initiatives that compelled non-compliant individuals and businesses to become part of the formal tax documentation system. The government’s persistent efforts to foster tax adherence while discouraging non-filers have played a pivotal role in this achievement.
The most recent update to the ATL, covering returns submitted up to August 20, 2023, and released on Monday, revealed that the FBR received an impressive 50,000 returns in the previous week. A key contributing factor to this surge in tax return submissions was the implementation of a significant measure through the Finance Act of 2023. This act introduced a provision for withholding tax on cash withdrawals from banks, which became operational on July 1, 2023. This step provided a strong incentive for taxpayers to promptly fulfill their tax responsibilities.
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Being a part of the ATL offers numerous advantages to taxpayers, including reduced income tax rates and specific exemptions from tax payments. This incentivizes more individuals and businesses to participate in the formal tax system.
The substantial increase in the number of active taxpayers marks a positive development for Pakistan’s revenue collection endeavors. By broadening the tax base and ensuring tax conformity, the government aims to achieve a more equitable distribution of the tax burden among citizens and corporations. The revenue generated from these efforts can be channeled towards vital sectors such as healthcare, education, and infrastructure, ultimately benefiting the entire nation.
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The FBR’s consistent drive to promote tax adherence through initiatives like the ATL and digital tax systems has yielded positive results in recent times. These actions have not only contributed to an enhanced tax collection process but have also increased transparency within the tax framework.
Given the FBR’s unwavering commitment to regular ATL updates, it is expected that the number of active taxpayers will continue to rise in the coming months. The government’s dedication to encouraging tax conformity, coupled with effective enforcement measures, is projected to further strengthen Pakistan’s comprehensive tax collection efforts, thereby contributing to the nation’s sustainable economic progress and growth.
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