FBR issues Active Taxpaers List 2016

KARACHI: The Federal Board of Revenue (FBR) on Wednesday issued the first Active Taxpayers List (ATL) for tax year 2016, showing the number of non-filers has increased by 0.2 million as compared to ATL 2015.

The latest ATL contained names of 1.01 million taxpayers, whereas ATL 2015 issued on February 27 showed the names of 1.21 million return filers.

The taxpayers on the ATL are allowed to avail benefits of lower withholding tax rates applicable under several heads of Income Tax Ordinance, 2001.

Tax experts said fall in number of income tax return filers indicates the failure of FBR in pursuing taxpayers to fulfil their obligations, including declaring wealth.

Sources in the FBR, however, said the number in the latest Active Taxpayers List would be increased as several returns were not included to the database.

The FBR has issued guidelines regarding benefits for the active taxpayers, which include permission to import and export.

Besides sales tax input credit/adjustment would be allowed, only if purchases were made by active taxpayers.

In its statement, the FBR explained: “expenses for income tax will only be admissible if purchases are made from active taxpayers; only active taxpayers will be able to participate in the procurement tenders; only active taxpayers will be able to operate as Clearing Agent, Shipping Agent, etc; and only active taxpayers will be able to serve as consultant, advisor, etc.”

The FBR issues ATL on weekly basis to update the number of return filers. The FBR sources said the number of return filers would further increase in the upcoming weeks due to the ongoing drive against non-filers.