| Islamabad: The Federal Board of Revenue (FBR) has reported a remarkable 76% increase in tax returns filed for 2024, receiving 5.215 million returns by November 6, as reported by a news source on November 8.
Read: New FBR strategy targets high-net-worth non-filers, fraudulent companies
According to the details, this surge contrasts significantly with the 2.959 million returns filed during the same period last year. Over the past week alone, the FBR collected 86,035 additional returns, many submitted with penalties after the October 31 deadline.
Tax revenue collected with these returns also rose substantially, reaching PKR 132.259 billion by early November, a 71.47% increase from the PKR 77.132 billion collected in the same timeframe in 2023. This growth reflects improved compliance and broader engagement in the tax system.
To facilitate easier compliance, the FBR extended the tax filing deadline twice beyond the original September 30 date, as outlined in the Income Tax Ordinance. By the tax year 2023, the total number of returns filed stood at 6.695 million, and in 2024, the FBR saw a sharp rise with 1.346 million new returns filed between July 1 and November 6. The agency also recorded a significant increase in taxpayer enrollment, adding 660,000 new filers in the same period this year.
The FBR attributes much of the growth to the rising number of nil-filers, those who file zero-income declarations primarily to be placed on the Active Taxpayers List (ATL) for favorable tax rates or one-time financial dealings. Nil filers represented 39% of the 2024 returns (2.051 million), an increase from 35% (1.036 million) last year. According to FBR, this trend is partly due to financial incentives for remaining active on the ATL.
Under its ongoing reform strategy, the FBR has proposed restricting non-filers from participating in several financial activities, including property purchases, vehicle acquisitions, and major investments, as well as imposing travel restrictions.
Read: Over 5 million returns filed as FBR holds firm on October 31 deadline
The plan also incorporates a tiered system where those earning above PKR 10 million enjoy full transactional privileges, while those below this threshold must verify income sources for certain asset purchases. The FBR’s reforms and increasing enrollment signal a shift towards greater financial transparency and regulatory enforcement, marking a noteworthy progression in Pakistan’s tax landscape. |
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