FBR Includes AJK and GB Tax Filers in Active Taxpayers List

In a significant move aimed at enhancing tax compliance, the Federal Board of Revenue (FBR) has announced that individuals who file their tax returns with the Azad Jammu and Kashmir Central Board of Revenue or the Gilgit Baltistan Council Board of Revenue will now be included in the Active Taxpayers List (ATL). This decision, formalized through S.R.O. 1448(I)/2024, marks an important step in recognizing taxpayers from these regions and integrating them into the national tax framework.

The FBR's new regulations stipulate that a person's name will be added to the ATL if they have filed their income tax return for the latest tax year by the specified due date or any extended due date granted by the Commissioner or the Board. This means that timely filing is crucial for taxpayers wishing to maintain their status as active contributors to the national revenue.

According to the FBR, the term "latest tax year" refers to the most recently completed tax year prior to the date of filing. If the due date for filing the return for this year has not yet passed, it will also include the previous tax year. This provision ensures that taxpayers are recognized for their compliance even if they file slightly later than the original deadline, provided they pay the necessary surcharge as outlined in the tax regulations.

Moreover, the FBR has clarified that companies or associations of persons that are newly formed after June 30 of the relevant tax year will also be included in the ATL, even if their returns are not yet due. This inclusion is a positive development for new businesses, as it allows them to establish their credibility and commitment to tax compliance from the outset.

This initiative by the FBR not only aims to encourage tax compliance but also seeks to foster a culture of accountability among taxpayers in Azad Jammu and Kashmir and Gilgit-Baltistan. By recognizing the contributions of these regions, the FBR is taking a step towards a more inclusive tax system that acknowledges the diverse economic activities across Pakistan.

The inclusion of taxpayers from Azad Jammu and Kashmir and Gilgit-Baltistan in the ATL is a commendable effort by the FBR to enhance tax compliance and promote fairness in the tax system. As more individuals and businesses recognize the importance of timely tax filing, it is hoped that this will lead to increased revenue generation for the government, ultimately benefiting the entire nation. Taxpayers are encouraged to stay informed about their filing obligations and take advantage of the provisions that support their inclusion in the ATL.