The Federal Board of Revenue (FBR) in Pakistan has announced that the number of income tax return filers has crossed the 4 million mark for the tax year 2024 as of October 13, 2024. This milestone reflects growing taxpayer engagement, but it also highlights a significant portion of filers who have reported nil income.
According to the FBR, a total of 4.436 million tax returns have been submitted for the tax year 2024 so far. Of these, 1.636 million returns are from filers who declared no taxable income, classifying them as nil-filers. This figure is indicative of the broader participation in the tax filing process, yet it also suggests room for growth in taxable income declarations among the public.
For the previous tax year, 2023, the total number of return filers reached 6.44 million. Out of these, 3.49 million returns were filed as nil returns, which meant that nearly 54% of the total filers reported no taxable income. The 2024 data up to October hints at a similar trend, where a considerable number of filers have no declared tax liabilities.
Alongside the rise in the number of tax filers, the FBR has collected a significant amount of revenue. For the tax year 2024, the tax returns submitted have been accompanied by a total collection of Rs. 114,338 million. This revenue boost is essential for Pakistan’s fiscal stability and supports the government’s efforts to maintain economic balance during challenging times.
Another aspect of the tax filing dynamics this year involves new registrations. Since the beginning of the fiscal year on July 1, 2023, up to now, a total of 1,035,922 individuals have registered with the FBR. Among these, 622,102 individuals have filed nil returns, highlighting that a substantial segment of the new registrants are yet to declare taxable income.
Specifically, between July 2024 and October 13, 2024, 450,405 new taxpayers registered with the FBR, with 307,482 of these being nil-filers. This reflects the current pace of registration and the ongoing challenge of converting these new registrants into active contributors to the tax base. The FBR’s focus remains on encouraging these registrants to declare their taxable incomes in the future, potentially increasing revenue collection.
The ongoing filing season has been marked by the FBR’s efforts to encourage compliance and facilitate the registration process for both new and returning taxpayers. Initiatives aimed at simplifying the filing process, as well as the extension of deadlines, have played a role in achieving the significant number of 4.436 million returns so far. However, the balance between nil-filers and active taxpayers continues to be a point of consideration for fiscal policy adjustments.
The increase in the number of tax filers signals progress in expanding the tax net in Pakistan, an important goal for the government’s long-term fiscal strategy. A larger pool of tax filers helps in broadening the tax base, which is critical for sustainable revenue generation. However, the high number of nil-filers also underscores the need for targeted measures to encourage income declaration and compliance among individuals and businesses.
As the tax year 2024 progresses, the FBR is expected to continue its efforts to improve the tax culture in the country. Encouraging a greater number of individuals to declare their income and comply with tax obligations will be key to achieving a balanced economic recovery and ensuring that the burden of taxation is equitably shared among all sectors of society.
With the deadline for filing approaching, it remains to be seen whether the total number of returns for the tax year 2024 will surpass the previous year’s figure of 6.44 million. The current figures are promising, but they also present an opportunity for further engagement with taxpayers to ensure a more robust tax compliance environment.