PTBA Raises Concerns on Active Taxpayers List 2023

PTBA Raises Concerns on Active Taxpayers List 2023

Karachi, March 7, 2024 – The Pakistan Tax Bar Association (PTBA) has voiced apprehensions and raised concerns over the recently released Active Taxpayers List (ATL) for the tax year 2023 by the Federal Board of Revenue (FBR).

In a letter addressed to the FBR Chairman, the PTBA commended the tax authorities for releasing the list but highlighted a significant decline in the number of active tax filers compared to the previous year.

According to the PTBA, the Active Taxpayers List for 2022 indicated 5.7 million active tax filers, while the Active Taxpayers List for 2023 reports only 3.35 million. This drastic reduction in the number of tax filers has raised concerns among the tax bar association, taxpayers, and monitoring agencies alike.

Expressing their reservations, the PTBA suggested that there might be misrepresentations in the released list. They pointed out that there were numerous cases where tax filings occurred late or within the extended time frame after the due date. However, these filings are not reflected in the Active Taxpayers List for 2023.

To address this issue, the PTBA proposed a revision of the Active Taxpayers List with a breakdown of categories, including Active Tax Filers, Non-Active Tax Filers, and the Total Filers. This proposed categorization aims to provide a clearer picture of the taxpayer landscape in Pakistan, considering the cases filed late or within the extended timeframe.

The PTBA expressed confidence that conducting such a revision would likely result in an increase in the number of tax filers. This, they believe, would have a positive impact on both the taxpayers and monitoring agencies. Moreover, it would enable the government to formulate policies for the sustainability of the tax system in Pakistan.

The association emphasized the importance of an accurate and comprehensive Active Taxpayers List to facilitate informed decision-making, promote tax compliance, and ensure the effectiveness of the tax system. They stressed that a transparent and inclusive list is crucial for maintaining the integrity of the tax system and fostering trust among taxpayers and the business community.

The PTBA called upon the FBR Chairman to address the concerns raised and undertake the suggested revision of the Active Taxpayers List for 2023. This collaborative effort, they believe, would contribute to a more accurate representation of the taxpayer landscape in Pakistan, supporting the government’s efforts to build a robust and sustainable tax framework.