The Federal Board of Revenue (FBR) has recorded a substantial increase in the number of income tax returns filed by September 30, 2026, but the rise in the number of filers has not translated into higher tax payments submitted with returns. According to data compiled by the tax authority, 5,767,384 income tax returns had been filed by the night of September 30, compared with 3,980,692 returns during the same period last year. The figures represent an increase of nearly 1.79 million returns, taking the number of filings approximately 45% higher than the previous year. Despite this growth, tax paid along with the returns declined 7%, falling to Rs77.3 billion from Rs83.3 billion recorded during the corresponding period last year.
The decline was particularly visible among companies, with 7,953 companies filing income tax returns by September 30, compared with 11,206 companies during the same period last year. Tax paid with company returns also decreased from Rs49 billion to Rs39.1 billion. FBR sources said total tax paid with returns during the period stood at Rs77.3 billion, around 7% below the Rs83.3 billion recorded a year earlier despite the considerable increase in the number of taxpayers submitting returns. The figures show that the growth in filing activity has been driven largely by taxpayers outside the corporate segment.
Traders, professionals and other non-salaried individuals have accounted for a significant share of the increase in filings. Returns submitted by non-salaried individuals rose 60%, increasing from 2.38 million to 3.81 million. The addition of approximately 1.43 million returns from this group represents around four-fifths of the overall increase in filings. By comparison, returns submitted by salaried individuals increased 22% to around 1.9 million. Returns from associations of persons, including partnerships, also increased 33% to 53,756. The figures indicate that the expansion in the taxpayer base during the current filing period has been concentrated heavily among non-salaried taxpayers.
The data also shows that a considerable portion of submitted returns continue to report no taxable income or no tax payable. Around 39% of all returns filed this year are classified as nil returns, broadly the same proportion recorded last year. Among non-salaried individuals alone, around 1.95 million returns were nil returns. At the same time, the number of returns declaring income above the taxable threshold increased 37%, rising from 1.82 million to nearly 2.5 million. Among non-salaried individuals, returns above the threshold increased 47%, while the corresponding increase among salaried individuals stood at 32%.
The number of payment filers, referring to taxpayers whose returns show tax paid, also increased during the period. Payment filers rose 38% to approximately 3.35 million, while the number among non-salaried individuals increased by around 50% to 1.75 million. Despite the decline in overall tax paid with returns, individuals recorded an 11% increase in tax payments submitted with their returns, taking the amount to Rs34.5 billion. Associations of persons also recorded a 16% increase, with tax paid rising to Rs3.7 billion. These increases were offset by the decline in tax paid by companies and the overall reduction in tax submitted alongside returns.
The growth in filing activity represents a significant change compared with previous years. At the end of September 2022, around 1.86 million returns had been filed. The number increased only slightly to 1.92 million in September 2023 before climbing to 3.72 million in 2024, 3.98 million in 2025 and 5.77 million in 2026. Returns filed by the end of September have therefore tripled over three years. Non-salaried taxpayers have also become a much larger part of the filing base. Five years ago, non-salaried returns stood at approximately 965,000 and represented about half of all returns, whereas they now account for around two out of every three returns.
The latest figures also underline the distinction between expanding the number of taxpayers and increasing the tax collected from those taxpayers. Bringing more people into the filing system has increased the number of declared taxpayers, but the large share of nil returns means the FBR will need to examine the information submitted to determine whether declarations accurately reflect taxpayers’ income and financial activity. Officials have indicated that risk-based audits could be the next stage, using the data available to the tax authority to assess declarations and identify cases requiring further examination. The approach would place greater emphasis on checking the accuracy of returns after the significant expansion in the number of taxpayers filing during the current year.
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