ISLAMABAD: The Federal Board of Revenue (FBR) has announced to unveil the new Active Taxpayers List (ATL) for the tax year 2023 on March 1, 2024.
This list will encompass the names of taxpayers who filed their annual income return for the tax year 2023 by the due date or until February 29, 2024, after paying the requisite late fees and surcharges for submissions beyond the last date.
The current ATL, updated until February 25, 2024, for the tax year 2022, has reached a historic high, boasting a substantial 5.73 million active taxpayers. This surge is deemed a pivotal step toward enhancing the tax-to-GDP ratio, a crucial metric for assessing fiscal health. FBR officials express confidence in sustaining this positive trajectory, crediting it to their proactive campaign aimed at integrating more individuals with taxable income into the formal tax system.
Inclusion in the ATL comes with tangible benefits, including lower tax rates on various financial transactions, serving as a compelling incentive for compliance. Despite these advantages, a notable number of individuals with taxable income persist in operating outside the formal tax system, often due to factors like possessing undocumented wealth. The FBR openly acknowledges this challenge and recognizes the limited scope of the current active taxpayer base compared to the country’s vast population of 240 million.
In an official statement, the FBR emphasizes, “Pakistan confronts a formidable challenge in its fiscal landscape characterized by rampant tax evasion, an alarmingly low tax-to-GDP ratio, and an inadequately low number of tax filers.” The country’s revenue generation is significantly hampered, resulting in insufficient funding for critical public services and socio-economic development initiatives.
To address these challenges, the FBR has outlined a comprehensive strategy to identify and integrate individuals with taxable income into the system. Their nationwide drive encourages all eligible individuals and income earners to “get registered with the Tax system and file their return of income.”
The forthcoming ATL for the tax year 2023 will remain applicable until February 28, 2025, and individuals appearing in the list can avail the benefits of reduced tax rates. This move is expected to further incentivize taxpayers and contribute to the ongoing efforts to broaden the tax base, ultimately bolstering the country’s fiscal position and promoting sustainable economic development. As the FBR unveils the new ATL, the nation eagerly anticipates the positive impact it will have on the tax landscape and overall economic well-being.
