The federal government has proposed a massive increase in the fee for restoring taxpayer status on the Federal Board of Revenue’s Active Taxpayers List. The proposal forms part of the Finance Bill 2026 presented with the federal budget.
If approved, the revised charges will take effect from July 1, 2026. The government says the move will encourage timely tax return filing.
Late Filers Face Steeper Restoration Charges
Under the proposed amendments, individuals will pay Rs 25,000 to regain Active Taxpayers List status. Previously, the restoration fee stood at Rs 1,000.
This represents a 2,400 percent increase in the surcharge for late filers. Meanwhile, Associations of Persons will pay Rs 50,000 instead of the current Rs 10,000.
Similarly, companies will face a restoration fee of Rs 100,000. Previously, businesses paid Rs 20,000 to restore their taxpayer status.
According to the Finance Bill, the revised fee structure aims to strengthen tax compliance across Pakistan.
Government Seeks Better Tax Compliance
The Federal Board of Revenue maintains the Active Taxpayers List for people who submit income tax returns before the deadline. However, authorities remove taxpayers who fail to file their returns on time.
Consequently, those excluded from the list pay higher withholding taxes on several financial transactions. These include banking services, property purchases, vehicle registrations and foreign travel.
Currently, late filers can restore their status after submitting overdue returns and paying a small surcharge. However, the government believes the existing charges have failed to discourage repeated late filing.
Therefore, officials proposed significantly higher restoration fees to improve voluntary compliance and increase revenue collection. Parliament must approve the Finance Bill before the new charges become effective.
