Karachi, September 5, 2023 – Pakistan’s Active Taxpayers List (ATL) has reached an all-time high, with approximately 4.54 million individuals and businesses now on the list, according to official documents released by the Federal Board of Revenue (FBR), Pakistan’s apex tax agency.
The latest ATL update for the tax year 2022, released on Monday, reveals this historic milestone. Tax experts attribute the surge in ATL registrations to citizens filing annual declarations to avoid higher income tax rates.
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In Pakistan, the government has imposed elevated rates of withholding income tax on individuals not on the ATL, effectively incentivizing them to register with the tax authorities. Recent electricity bills, which included substantial tax amounts, particularly for individuals not on the ATL, have further encouraged this trend.
The FBR’s weekly ATL update, covering returns submitted up to September 3, 2023, encompasses the names of individuals and businesses that have filed their returns for the tax year 2022. The significant increase in active taxpayers can be attributed to strategic initiatives aimed at compelling non-compliant entities to become part of the formal tax documentation system.
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The government’s persistent efforts to promote tax compliance while discouraging non-filers have played a pivotal role in achieving this milestone.
The most recent ATL update unveiled that the FBR received an impressive 40,000 returns in the previous week. A key contributing factor to this surge in tax return submissions was the implementation of a significant measure through the Finance Act of 2023.
Being part of the ATL offers several advantages to taxpayers, including reduced income tax rates and specific exemptions from tax payments. These incentives are driving more individuals and businesses to participate in the formal tax system.
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The substantial increase in the number of active taxpayers marks a positive development for Pakistan’s revenue collection efforts. By expanding the tax base and ensuring tax compliance, the government aims to achieve a fairer distribution of the tax burden among citizens and corporations. The revenue generated from these efforts can be channeled towards critical sectors such as healthcare, education, and infrastructure, benefiting the entire nation.
The FBR’s consistent drive to promote tax compliance through initiatives like the ATL and digital tax systems has yielded positive results in recent times. These actions have not only improved the tax collection process but have also increased transparency within the tax framework.
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Given the FBR’s commitment to regular ATL updates, it is expected that the number of active taxpayers will continue to rise in the coming months. The government’s dedication to encouraging tax compliance, coupled with effective enforcement measures, is projected to further strengthen Pakistan’s comprehensive tax collection efforts, contributing to the nation’s sustainable economic progress and growth.
