Islamabad, July 25, 2023 – Pakistan’s Active Taxpayers List (ATL) has achieved a significant milestone, now boasting 4.22 million active taxpayers. This notable growth occurred following the implementation of cash withdrawal conditions on July 1, 2023.
The Federal Board of Revenue (FBR) recently published an updated ATL for the tax year 2022, incorporating returns filed until July 23, 2023. Sources within the FBR revealed that the number of active taxpayers has experienced a remarkable surge in the past month, primarily due to the government’s new measures aimed at discouraging non-filers of income tax returns.
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The Finance Act of 2023 introduced a provision for withholding tax on cash withdrawals from the banking system, which came into effect on July 1, 2023, incentivizing tax compliance.
The ATL is continually updated by the FBR on a weekly basis, including the names of return filers who have fulfilled their tax obligations during that respective week. Being part of the ATL comes with several benefits for taxpayers, such as the application of lower income tax rates and certain exemptions from tax payments.
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This substantial increase in the number of active taxpayers in Pakistan is viewed as a positive development for the country’s revenue collection efforts. The government’s focus on encouraging tax compliance through the ATL aims to expand the tax base and ensure a fair distribution of the tax burden among individuals and businesses.
It’s worth noting that the FBR’s consistent efforts to promote tax compliance have yielded positive results in recent years. Measures like the ATL and digital tax initiatives have contributed to improved tax collection and greater transparency in the tax system.
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The government’s commitment to broadening the tax base and fostering voluntary tax compliance is a crucial step toward achieving sustainable economic growth and development. Strengthening revenue streams will enable the allocation of more resources to critical sectors such as healthcare, education, and infrastructure, benefiting the entire nation.
As the FBR continues to update the ATL regularly, it is expected that the number of active taxpayers will continue to rise in the coming months. The government’s dedication to promoting tax compliance, coupled with effective enforcement measures, is poised to yield positive outcomes in Pakistan’s overall tax collection efforts.
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