The Federal Board of Revenue (FBR) has decided to remove non-filers from the Active Taxpayer List (ATL). The decision comes as a part of the FBR’s effort to increase tax compliance and broaden the tax base in Pakistan. The deadline for filing tax returns is December 15, 2022, and the FBR has already extended the deadline twice, giving ample time for taxpayers to organize and assess their financial affairs before filing their returns.
The FBR’s decision to remove non-filers from the ATL means that those who do not file their tax returns by the deadline will lose the status of an active taxpayer. This means they will not be able to enjoy the benefits of being an active taxpayer, such as claiming refunds and carrying forward business losses.
To be included back into the ATL, non-filers will have to pay a surcharge. According to the Income Tax Ordinance 2001, the surcharge amount is Rs. 20,000 for companies, Rs. 10,000 for firms or associations of persons, and Rs. 1,000 for individuals. This provision has been applicable since the tax year 2018.
It is important to note that the FBR’s decision to remove non-filers from the ATL is in line with the government’s efforts to increase tax compliance and revenue generation. Pakistan’s tax-to-GDP ratio is one of the lowest in the world, and increasing tax compliance is crucial for the country’s economic growth and development.
In order to facilitate taxpayers in filing their tax returns, the FBR has launched an online tax filing system that allows taxpayers to file their returns from the comfort of their homes or offices. The online tax filing system is user-friendly and allows taxpayers to file their returns quickly and easily. The FBR has also set up help desks and facilitation centers across the country to assist taxpayers in filing their returns.
In addition to the online tax filing system, the FBR has also launched a mobile application that allows taxpayers to check their tax status, view their tax profile, and access other tax-related information. The mobile application is available for download on both Android and iOS platforms.
It is important for Pakistani taxpayers to file their tax returns on time and comply with tax laws to avoid any penalties or legal issues. Filing tax returns is not only a legal obligation but also a civic responsibility. By paying their due taxes, taxpayers contribute to the development and progress of the country.
In conclusion, the FBR’s decision to remove non-filers from the ATL is a step in the right direction towards increasing tax compliance and revenue generation in Pakistan. It is important for taxpayers to file their tax returns on time and comply with tax laws to avoid any penalties or legal issues. The online tax filing system and mobile application launched by the FBR are important tools that facilitate taxpayers in filing their returns quickly and easily.