ISLAMABAD: The Federal Board of Revenue (FBR) has extended significant tax relief to residents of Azad Jammu and Kashmir (AJK) and Gilgit-Baltistan by allowing them to be included in the Active Taxpayers List (ATL). This move enables eligible residents to enjoy filer tax rates on financial and business transactions across Pakistan.
Under a newly notified amendment to the income tax framework, taxpayers from AJK and Gilgit-Baltistan who are already registered as active taxpayers with the Azad Jammu and Kashmir Central Board of Revenue or the Gilgit-Baltistan Council Board of Revenue will now be added to the FBR’s ATL.
The FBR issuedSRO.2423(I)/2025, proposing draft amendments to the Income Tax Rules, 2002 to implement this decision.
According to the notification, a person will be included in the ATL under Section 181A of the Income Tax Ordinance if their temporary or permanent address is in AJK or Gilgit-Baltistan. For individuals whose addresses are in Pakistan, the concerned Commissioner Inland Revenue will verify through the IRIS system that the person does not hold employment or business in Pakistan. This verification will be conducted after an inquiry and obtaining an undertaking from the taxpayer.
Simultaneously, the respective Commissioner of the Azad Jammu and Kashmir Central Board of Revenue or the Gilgit-Baltistan Council Board of Revenue will verify employment or sole business presence in their regions through IRIS.
The FBR clarified that if it later determines a person included in the ATL is required to file a return under Section 114 of the Ordinance and fails to comply with a notice, their name will be removed from the Active Taxpayers List.
This measure aims to facilitate taxpayers from AJK and Gilgit-Baltistan by granting access to filer rates while ensuring safeguards to prevent misuse of the facility.
