The concerted efforts of the caretaker government in Pakistan are showing promising results, with the number of active taxpayers (ATL) reaching 5.3 million, as reported by Federal Board of Revenue (FBR) sources.
According to FBR data, the count of individual taxpayers has reached 3.69 million, reflecting a substantial increase in the income tax updated ATL. In addition, the number of corporate entities and associations of persons (AOPs) contributing to the ATL has reached 1.67 million.
The FBR chairman, in a recent update to the Senate Standing Committee on Finance and Revenue, highlighted that there are a total of 11.4 million registered persons, although not all of them are currently filing their income tax returns.
The FBR has received over 2.9 million income tax returns for the tax year 2023 up to October 31, 2023, indicating an encouraging response from taxpayers. In a bid to incentivize compliance, the FBR had previously announced that non-filers would face consequences such as the disconnection of utility services, including electricity and gas, as well as the blocking of mobile SIMs if they fail to file returns in response to issued notices.
Comparing the data to the previous year, the FBR had received over 2.5 million returns by October 2022. The total number of income tax returns received up to September 30, 2023, stood at 1.93 million, showcasing a year-on-year increase of 0.06 million.
The surge in active taxpayers reflects the positive impact of the caretaker government’s initiatives to enhance tax compliance, strengthen the tax base, and foster financial transparency in Pakistan. As the country progresses in its efforts to encourage tax filing and compliance, these numbers signify a significant step toward achieving broader fiscal objectives.
