Islamabad, September 25, 2023 – Pakistan has reported a record-breaking number of 4.72 million income tax returns for the tax year 2022, as per official data released on Monday.
The Federal Board of Revenue (FBR) has issued the Active Taxpayers List (ATL), which includes income tax returns filed until September 24, 2023.
This impressive growth in the ATL can be attributed to proactive initiatives by tax authorities to expand the tax base and bring taxable income within the tax net. The expansion of ATL demonstrates the success of ongoing efforts to enhance tax compliance.
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In the latest weekly update for the tax year 2022, a remarkable 60,000 new tax return filers were added to the ATL, highlighting the effectiveness of the current tax compliance campaign.
Notably, the caretaker government has initiated a comprehensive crackdown on potential taxpayers, directing the FBR to closely scrutinize individuals involved in significant financial transactions who have not yet registered in the tax system.
The growth of ATL can also be credited to recent government measures aimed at shifting responsibility onto individuals engaged in transactions outside the formal economy. The government has raised withholding income tax rates for those not listed in the ATL, creating a strong incentive for them to formalize their tax obligations. The recent increase in electricity bills, particularly for non-ATL individuals, has further accelerated this trend.
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The substantial increase in the number of ATL members underscores the success of strategic initiatives designed to encourage non-compliant entities to embrace the formal tax documentation system. The government’s unwavering commitment to promoting tax compliance and deterring non-filers has played a pivotal role in achieving this significant milestone.
Membership in the ATL offers several advantages to taxpayers, including reduced income tax rates and specific exemptions from tax obligations. These attractive incentives have enticed a growing number of individuals and businesses into the structured tax system.
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The significant growth in the number of active taxpayers represents a commendable advancement in Pakistan’s efforts to increase revenue collection. By expanding the tax base and ensuring tax compliance, the government aims to achieve a fairer 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, providing tangible benefits to 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.
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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.
