Number of people filing income tax returns surpasses 4 million

ISLAMABAD: According to the Active Taxpayers List (ATL), the latest updated figure for those who have filed income tax returns is currently over 4 million and may potentially reach 4.5 million.

Asif S. Kasbati, a tax expert and member of the PBC Core Tax Committee and ICAP Fiscal Laws Committee, reported that as of June 27, 2023, the FBR statistics indicated that the Income Tax ATL status for the Tax Year 2022 was at above 4 million. However, it is anticipated that by September 30, the ATL figure would increase to 4.5 million.

He brought up the fact that the ATL for the Tax Year (TY) 2018 was 1.8 million and climbed to 2.4 million for the TY 2019 when speaking with Asif S. Kasbati. On September 20, 2022, it was 2.9 million for TY 2020.

Kasbati stated that the ATL for the Tax Year 2021, announced on December 12, 2022, had 3.83 million taxpayers, and he predicted that number will reach 4 million by February 28, 2023, taking into account the historical monthly progress.

The top tax advisor noted that FBR had pledged to register 300,000 new taxpayers, a number that some experts have deemed to be impossible.

However, according to Kasbati study, there would be 4.5 million taxpayers on the ATL for tax year 2022 as opposed to 4 million in 2021, representing a notable rise from the previous year. His forecast is based on the typical monthly progressing ratio of 3%.

However, by expanding the tax base through data mining of withholding taxes, collaboration with NADRA, Provincial Revenue Authorities for Properties & Motor Vehicles, bringing as many Non-Tier 1 traders into the tax net as possible, etc., FBR can meet the target of 4.5 million taxpayers early on the ATL.

According to Kasbati, many people file returns simply to be in ATL without paying significant income tax; as a result, the FBR must determine how many taxpayers are truly making tax payments. He remembered that FBR had published “Income Tax Filer Directory with Tax Paid by Each Tax Payer” a few years prior, which was beneficial for transparency.

He stated that the Directory might be released for the Tax Years 2021 and 2022.

Related Articles

Back to top button
Stay up to date
Don't miss out on the latest industry news and articles
Stay up to date
Don't miss out on the latest industry news and articles
You are Subscribed!
Your subscriptions means a lot to us.
Don't miss out on the latest Industry news
You are Subscribed!