Islamabad, October 17, 2023 – Pakistan has reached a historic milestone with a total of 4.88 million active taxpayers now featured on the updated list of income tax return filers released by the Federal Board of Revenue (FBR).
The FBR has issued the Active Taxpayers List (ATL) based on income tax returns filed up to October 15, 2023. The ATL is updated weekly to include the names of individuals who have filed their returns, ensuring their inclusion on the list.
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This substantial expansion of the ATL stands as a testament to the proactive efforts of tax authorities in broadening the tax base and promoting tax compliance. It reflects the success of ongoing initiatives aimed at bringing more taxable income under the tax net.
In the most recent weekly update for the tax year 2022, approximately 50,000 new tax return filers were added to the ATL, demonstrating the effectiveness of the current tax compliance campaign.
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The caretaker government has also launched a comprehensive crackdown on potential taxpayers, instructing the FBR to closely scrutinize individuals involved in significant financial transactions who have not yet registered in the tax system.
The growth of the ATL can also be attributed to recent government measures that shift the responsibility onto individuals engaged in transactions outside the formal economy. Increased withholding income tax rates for those not on the ATL have provided a strong incentive for them to formalize their tax obligations. Rising electricity bills, especially for non-ATL individuals, have further accelerated this trend.
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Membership in the ATL offers several advantages to taxpayers, including reduced income tax rates and specific exemptions from tax obligations. These incentives have attracted a growing number of individuals and businesses into the structured tax system.
The remarkable growth in the number of active taxpayers represents a significant advancement in Pakistan’s efforts to increase revenue collection. By expanding the tax base and ensuring tax compliance, the government aims to achieve a more equitable distribution of the tax burden among citizens and corporate entities. The resulting increase in revenue can be directed towards critical sectors such as healthcare, education, and infrastructure, benefiting the entire nation.
The consistent efforts of the FBR to promote tax compliance through initiatives like the ATL and digital tax systems have yielded positive results. These actions have not only streamlined the tax collection process but have also enhanced 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, coupled with rigorous enforcement measures, is poised to strengthen Pakistan’s comprehensive tax collection efforts, making a substantial contribution to the nation’s sustainable economic development and prosperity.
