Karachi, March 18, 2024 – The Federal Board of Revenue (FBR) has announced that the Updated Active Taxpayers List (ATL) for tax year 2023 has expanded significantly, reaching 3.67 million active taxpayers, according to official data released on Monday.
This development marks a substantial increase from the previous ATL figures, showcasing the addition of approximately 320,000 new active taxpayers since the launch of the updated list on March 1, 2024. The FBR’s efforts to bolster tax compliance and expand the tax net have contributed to this notable surge.
The surge witnessed in the ATL for the tax year 2023 is considered a significant step towards enhancing the tax-to-GDP ratio, a crucial metric for assessing a nation’s fiscal health. FBR officials express optimism about sustaining this positive trajectory, attributing it to their proactive campaign aimed at integrating more individuals with taxable income into the formal tax system.
Inclusion in the ATL offers tangible benefits for taxpayers, including the opportunity to avail lower tax rates on various financial transactions. These incentives serve as compelling motivators for compliance. However, despite these advantages, a considerable number of individuals with taxable income continue to operate outside the formal tax system, partly due to possession of undocumented wealth.
The FBR openly acknowledges this challenge, recognizing the limited scope of the current active taxpayer base in comparison to the country’s vast population, which stands at 240 million. However, the FBR remains committed to expanding the tax net and boosting compliance through various initiatives such as awareness campaigns, simplified tax procedures, and enhanced digital infrastructure.
Efforts to create an environment conducive to voluntary tax compliance are central to the FBR’s strategy. By encouraging individuals to participate in the tax system, the FBR aims to not only increase revenue collection but also foster economic development across the country.
Despite the recent expansion in the ATL, challenges persist, and the FBR acknowledges the need for sustained efforts and targeted strategies to further increase the active taxpayer base. The agency remains resolute in its commitment to fostering a culture of tax compliance, believing that such efforts will contribute to the country’s economic stability and progress.
As the FBR continues its mission to streamline tax collection processes and bridge the gap between taxpayers and the formal system, the landscape of tax regulation and compliance in Pakistan is expected to witness further enhancements in the coming years. Citizens are encouraged to actively participate in building a financially robust nation by fulfilling their tax obligations promptly and efficiently.
The expansion of the ATL reflects a positive trend towards greater tax compliance and fiscal responsibility, signaling a promising future for Pakistan’s economic landscape underpinned by a stronger and more inclusive tax system.
