Karachi, October 24, 2023 – Pakistan has achieved a historic milestone with a record-breaking 4.93 million active taxpayers, as per the latest data released by the Federal Board of Revenue (FBR).
The FBR, in its unwavering commitment to transparency and tax compliance, has unveiled the updated Active Taxpayers List (ATL) based on income tax returns filed until October 22, 2023, and continues to refresh the list on a weekly basis, incorporating the names of diligent taxpayers.
This remarkable surge in the ATL underscores the relentless efforts of tax authorities to broaden the tax base and foster tax compliance, ultimately leading to the success of ongoing initiatives geared towards bringing more taxable income into the formal tax net.
In the most recent weekly update for the tax year 2022, an impressive 50,000 new tax return filers were seamlessly integrated into the ATL, reaffirming the effectiveness of the current tax compliance campaign.
Furthermore, the interim government has initiated a comprehensive drive to identify potential taxpayers, mandating the FBR to rigorously assess individuals engaged in significant financial transactions who are yet to register in the tax system.
The expanding ATL can also be attributed to recent government actions that encourage individuals involved 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 uptick in electricity costs, especially for non-ATL individuals, has further propelled this shift.
Membership in the ATL confers numerous benefits, including reduced income tax rates and specific exemptions from tax obligations. These alluring incentives have drawn a growing number of individuals and businesses into the organized tax system.
The notable upswing in active taxpayers signifies a significant leap in Pakistan’s pursuit of enhanced revenue collection. By broadening 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 FBR’s persistent efforts to bolster tax compliance through initiatives like the ATL and digital tax systems have yielded favorable outcomes. These actions have not only streamlined the tax collection process but have also elevated transparency within the tax framework.
With the FBR’s unwavering commitment to regular ATL updates, it is anticipated that the number of active taxpayers will continue to swell in the coming months. The government’s dedication to stimulating tax compliance, bolstered by stringent enforcement measures, is poised to fortify Pakistan’s comprehensive tax collection endeavors, making a substantial contribution to the nation’s sustainable economic development and prosperity.
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