Islamabad, July 17, 2023 – The Pakistan Active Taxpayers List (ATL) has experienced a substantial growth, reaching a record high of 4.15 million individuals, after the introduction of cash withdrawal conditions on July 1, 2023. The Federal Board of Revenue (FBR) recently released an updated ATL for the tax year 2022, based on returns filed until July 16, 2023.
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According to sources within the FBR, the number of active taxpayers has seen a remarkable surge in the past month, primarily due to the implementation of new conditions by the government to discourage non-filers of income tax returns. In an effort to incentivize tax compliance, the Finance Act of 2023 introduced a provision for withholding tax on cash withdrawals from the banking system, effective from July 1, 2023.
The FBR maintains a weekly update of the ATL, incorporating the names of return filers who have fulfilled their tax obligations during the respective week. Inclusion in the ATL offers various benefits to taxpayers, including the application of lower income tax rates and certain exemptions from tax payments.
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The significant increase in the number of active taxpayers in Pakistan is seen as a positive sign for the country’s revenue collection efforts. By incentivizing tax compliance through the ATL, the government aims to broaden the tax base and ensure a fair distribution of the tax burden among individuals and businesses.
It is important to note that the FBR’s continuous efforts to promote tax compliance have yielded positive results in recent years. The introduction of various measures, such as the ATL and digital tax initiatives, has led to improved tax collection and enhanced transparency in the tax system.
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The government’s focus on expanding the tax base and encouraging voluntary tax compliance is a crucial step towards achieving sustainable economic growth and development. By strengthening revenue streams, the government can allocate more resources towards critical sectors such as healthcare, education, and infrastructure, ultimately benefiting the entire nation.
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As the FBR continues to update the ATL regularly, it is anticipated that the number of active taxpayers will further increase in the coming months. The government’s commitment to promoting tax compliance, coupled with effective enforcement measures, is expected to yield positive results in the overall tax collection efforts of Pakistan.
