On May 1, 2023, the Federal Board of Revenue (FBR) announced that more than 30,000 filers had been added to the Active Taxpayers List (ATL).
The updated ATL is based on income tax returns filed up until April 30, 2023, and shows an increase in active taxpayers to 3.58 million from 3.55 million the previous week.
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In March 2023, the FBR issued the latest ATL for the tax year 2022, which included 3.21 million active taxpayers. The ATL for the tax year 2021, released last year, included returns filed until February 26, 2023, and had 4.19 million taxpayers.
The FBR officials have announced that taxpayers, including salaried individuals, business owners, associations of persons, and companies with a special year, have until September 30 to file their income tax returns for the tax year 2022.
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However, companies with a normal accounting year must file their annual return by December 31. Taxpayers who filed their returns by December 15, 2022, or later with the surcharge payment are eligible for the ATL. Those who failed to file their returns for Tax Year 2022 will not benefit from reduced rates of withholding tax from March 01, 2023.
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The ATL is a transparent record of online Income Tax Return filers for the previous tax year, published annually on March 01 and valid until the end of February of the following financial year. The FBR introduced a provision in the Finance Act of 2018, restricting the inclusion of a person’s name in the ATL if they failed to file a tax return by the due date. However, the Finance Act of 2019 allows a person’s name to be included in the ATL, even if they filed a tax return after the due date specified by the Income Tax authorities.
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The ATL is a crucial tool for monitoring and managing the tax system, allowing tax authorities to verify compliance with tax laws and regulations. It helps identify taxpayers who have filed their tax returns and paid their taxes, providing a clear picture of the tax base.
Compliance with tax laws and regulations is essential for all taxpayers to avoid penalties and contribute to the country’s development. The release of the updated ATL by the FBR is a significant step towards strengthening the country’s tax system.
