Pakistan’s tax return filers can soon enjoy government incentives for active taxpayers, as the Federal Board of Revenue (FBR) will publish the new Active Taxpayer List (ATL) on November 1, 2024—months earlier than the usual March release.
This change means taxpayers won’t have to wait until March to be listed on the ATL. This is especially beneficial for those involved in buying and selling, as they can take advantage of ATL benefits sooner.
However, the deadline for filing tax returns will not be extended for the third time, as the last date for filing returns is October 30.
In case a person files income tax return for the latest tax year, after the due date or extended due date, his/her name will be included in the active taxpayer’s list, if he pays the prescribed surcharge.
From July 1, 2023, to October 14, 2024, a total of 1.035 million new filers registered with Inland Revenue. Out of these, 0.622 million are nil filers. Similarly, since July 1, 2024, 0.45 million new filers have registered, with 0.3 million being nil filers.
As of October 14, 2024, 4.436 million income tax returns were filed for the tax year 2024. This is significantly lower compared to the 6.44 million returns filed for the tax year 2023. Benefits of being on ATL.
Being on the ATL provides several benefits, including lower rates of tax deduction at source by banks on profits and cash withdrawals, reduced withholding tax when registering and transferring motor vehicles, lower tax rates on buying and selling property, lower withholding tax on capital gains from the sale of securities, reduced charges on dividend tax, lower withholding tax rates on prize bond winnings, and the ability to claim back overpaid tax that has been withheld.