The Federal Board of Revenue (FBR) has expressed serious concern over significant disparities in tax compliance during 2023–24 with a major gap between income and sales tax participation.
According to a FBR’s new report, with 4,738,595 active taxpayers and only 234,193 sales tax filers, there is a notable gap between income and sales tax participation during 2023-24. Regional Tax Office (RTO) Lahore leads in both categories, while Karachi and Faisalabad also show strong performance.
In contrast, LTOs like Multan and Islamabad report the lowest numbers, reflecting their focus on specialized taxpayers.
Urban centers dominate the tax base, but smaller regions like Sialkot perform relatively well. The varied active taxpayer-to-sales tax filer ratios underscored the need to expand sales tax compliance, particularly in regions with high income tax participation.
The number of active taxpayers during FY 2023-24 highlights a total of 4.74 million active income tax filers and 234,193 sales tax filers across various regions.
RTO Lahore leads with 809,131 active income tax filers, followed by RTO-II Karachi (522,284) and RTO Multan (382,575). In sales tax filers, RTO Lahore again ranks highest with 41,783 filers, followed by RTO-I Karachi (20,979). These figures reflect consistent growth in taxpayer engagement, showcasing the FBR’s success in broadening tax compliance and strengthening the revenue base, the FBR report added.
