Islamabad, September 18, 2023 – Pakistan’s Active Taxpayers List (ATL) has achieved a historic milestone, reaching a record high of 4.66 million individuals and businesses as of September 17, 2023, according to the latest update issued by the Federal Board of Revenue (FBR) on Monday.
This remarkable growth in the ATL can be attributed to a robust and proactive initiative undertaken by tax authorities to broaden the tax base and bring taxable income under the tax net. The ATL’s expansion reflects the success of ongoing efforts to enhance tax compliance.
In the most recent weekly update for the tax year 2022, an impressive 60,000 new tax return filers were added to the ATL, highlighting the effectiveness of the tax compliance campaign currently underway.
Notably, the caretaker government has launched a comprehensive crackdown on potential taxpayers, instructing the FBR to closely scrutinize individuals engaged in significant financial transactions who have not yet registered in the tax system.
The growth of the ATL is also attributed to recent government measures aimed at shifting the responsibility onto individuals involved in transactions outside the formal economy. The government has increased withholding income tax rates for those not listed in the ATL, creating a strong incentive for them to formalize their tax obligations. The recent rise in electricity bills, especially for non-ATL individuals, has further accelerated this trend.
The substantial increase in the ATL’s numbers 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 attracted a growing number of individuals and businesses into the structured tax system.
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 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, 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.
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.