Pakistan Achieves Record High of 4.88 Million Active Taxpayers

Pakistan has achieved a record high of 4.88 million active taxpayers, according to the Federal Board of Revenue (FBR). This represents a significant increase in the number of taxpayers, and is a testament to the government's efforts to broaden the tax base and promote tax compliance.

The FBR has released the Active Taxpayers List (ATL) based on income tax returns filed up to October 15, 2023. The ATL is updated weekly to include the names of individuals who have filed their returns.

The growth of the ATL can be attributed to a number of factors, including:

·         Proactive efforts by the tax authorities to broaden the tax base and promote tax compliance.

·         The success of ongoing initiatives aimed at bringing more taxable income under the tax net.

·         A crackdown on potential taxpayers who have not yet registered in the tax system.

·         Recent government measures that shift the responsibility onto individuals engaged in transactions outside the formal economy.

·         Incentives offered to taxpayers who register with the ATL, such as reduced income tax rates and specific exemptions from tax obligations.

The growth in the number of active taxpayers is a significant development for Pakistan. It represents a move towards a more equitable distribution of the tax burden, and provides the government with additional revenue to invest in critical sectors such as healthcare, education, and infrastructure.

The FBR is committed to regular ATL updates, and it is expected that the number of active taxpayers will continue to grow in the coming months. The government's dedication to stimulating tax compliance, coupled with rigorous enforcement measures, is poised to strengthen Pakistan's comprehensive tax collection efforts, making a substantial contribution to the nation's sustainable economic development and prosperity.