The Federal Board of Revenue (FBR) has reported a noteworthy surge in the total number of active taxpayers, reaching 1.81 million for the tax year 2017, according to the latest Active Taxpayers List (ATL) released on a weekly basis.
This figure indicates a positive trend in tax compliance and reflects the ongoing efforts to broaden the tax base in the country.
The ATL for the tax year 2017 will remain in effect until February 28, 2019, after which the FBR is set to introduce the new ATL for the tax year 2018 on March 1, 2019. The weekly ATL updates have been a crucial tool for keeping track of return filings, but there are upcoming changes in the process that taxpayers should be aware of.
From March 1, 2019, the FBR will discontinue the issuance of weekly ATLs as per new regulations. Late filers will no longer have their names included in the ATL, in line with the introduction of a new provision, Section 182A, to the Income Tax Ordinance, 2001. This amendment prohibits late filers from being listed in the ATL.
The total number of return filers to be featured on the upcoming ATL for the tax year 2018 is expected to be 1.55 million, indicating a decrease of 0.26 million compared to the ATL for the previous year. This reduction is a result of the exclusion of late filers from the ATL, aligning with the legal amendments introduced through the Finance Act, 2018.
The ATL holds significance for taxpayers as it is a prerequisite for availing reduced rates of withholding tax for various transactions. Being on the ATL allows taxpayers to benefit from favorable tax rates, making compliance an attractive option for individuals and businesses alike.
The increase in the number of active taxpayers for the tax year 2017 is a positive signal for the FBR’s ongoing efforts to enhance tax collection and promote a culture of tax compliance. The ATL serves as a public record of individuals and entities actively contributing to the tax base, fostering transparency and accountability.
While the new regulations bring stricter criteria for inclusion in the ATL, they are aimed at encouraging timely and consistent tax filing. The move is expected to discourage late filing and promote a more punctual approach to tax compliance, contributing to the efficiency and effectiveness of the tax system.
As the FBR transitions to the new ATL for the tax year 2018, taxpayers are advised to stay informed about the changes in regulations and ensure timely filing to maintain their status as active taxpayers. The shift in focus towards punctuality and adherence to filing deadlines is anticipated to have a positive impact on tax administration and revenue collection in the long run.
