Karachi, December 19, 2023 – Pakistan has etched its name in history by achieving an unprecedented milestone of 5.32 million active taxpayers, as disclosed by the Federal Board of Revenue (FBR).
The FBR, in its latest update to the Active Taxpayers List (ATL) on December 18, 2023, unveiled a remarkable surge in active taxpayers, setting a record that reverberates through the economic annals of the nation. The inclusion of income tax return filers in the ATL followed the submission of declarations of income and assets, accompanied by fines, penalties, and surcharges for the tax year 2022, concluding by December 17, 2023.
FBR sources elucidated that citizens, cognizant of the advantages entailed, were swift in filing their income tax returns to circumvent higher withholding tax obligations. The inclusion of a taxpayer’s name in the ATL not only signifies a commitment to fiscal responsibility but also ensures the privilege of reduced withholding tax rates or, in some instances, no deduction at all.
The ATL, a cornerstone of the tax administration framework, is annually published on the 1st of March, remaining valid until the last day of February of the subsequent financial year. For instance, the Active Taxpayer List for the Tax year 2022 was unveiled on March 1, 2023, and will retain its validity until February 29, 2024. The forthcoming ATL for Tax year 2023 is slated for publication on March 1, 2024, remaining in effect until February 28, 2025.
In a noteworthy development, the ATL is diligently updated every Monday on the official website of the FBR, ensuring real-time information dissemination to the public.
Introduced through the Finance Act of 2018, a stringent criterion stipulates that a person’s name can only be included in the ATL if the individual files their Tax Return by the specified due date set by the Income Tax authorities. However, the Finance Act of 2019 has introduced flexibility by allowing names to be part of the ATL even if the Tax Return is filed after the specified due date.
The Act also outlines surcharges for late filings: Rs 20,000 for companies, Rs 10,000 for Associations of Persons (AOP), and Rs 1,000 for individuals. A further provision includes entities formed after June 30 of the relevant tax year being included in the ATL, should their returns not be due to filing delays.
Additionally, joint account holders and bank accounts in the name of minors are covered in the ATL criteria if specific conditions are met, emphasizing the FBR’s commitment to inclusivity and comprehensive taxpayer coverage.
Late filers for Tax Year 2021 now have the option to pay the “Surcharge for ATL” under section 182(A) of the Income Tax Ordinance 2001, ensuring their inclusion in the prestigious ATL after the payment is processed.
This monumental achievement underscores Pakistan’s unwavering commitment to financial responsibility and sets a strong foundation for sustained economic growth. The nation stands poised to harness the benefits of an expanding tax base, heralding a new era of fiscal stability and prosperity.
