The Federal Board of Revenue (FBR) has formally included taxpayers from Azad Jammu and Kashmir (AJK) and Gilgit-Baltistan (GB) in Pakistan’s federal Active Taxpayers’ List (ATL), provided they are already registered with their respective regional tax authorities.
The decision has been notified through SRO 17(I)/2026, which amends the Income Tax Rules, 2002, officials confirmed.
Legal Amendment to Income Tax Rules 2002
Under the new notification, any individual whose name appears on the Active Taxpayers’ List of the AJK Central Board of Revenue or the Gilgit-Baltistan Council Board of Revenue will also be recognized on the federal ATL maintained by the FBR under Section 181A of the Income Tax Ordinance, 2001.
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This amendment legally links regional tax databases with the federal tax system, enabling broader tax record integration across all territories administered by Pakistan.
Address-Based Eligibility Criteria
According to the FBR, inclusion in the federal ATL will apply when the individual’s temporary or permanent address is located in AJK or Gilgit-Baltistan, as recorded on the CNIC.
However, special verification procedures will apply in cases where a person holds addresses both in Pakistan and in AJK or GB.
Verification Process Through IRIS System
In such dual-address cases, the Commissioner Inland Revenue with jurisdiction based on the individual’s temporary CNIC address in Pakistan will verify through the IRIS system that the person:
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does not have employment in Pakistan, and
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is not conducting business in Pakistan.
This verification will be completed after conducting an inquiry and obtaining a formal undertaking from the taxpayer.
Simultaneously, the concerned commissioner of the AJK Central Board of Revenue or the GB Council Board of Revenue will confirm through IRIS that the individual is engaged in employment or a sole proprietorship business within AJK or Gilgit-Baltistan.
Removal from ATL if Tax Obligations Are Not Met
The FBR clarified that if, at any stage, the Commissioner Inland Revenue determines that an individual is required to file an income tax return under Section 114 of the Income Tax Ordinance and the person fails to comply with a legal notice, their name will be removed from the Active Taxpayers’ List.
This provision ensures that only compliant taxpayers continue to benefit from ATL status.
Objective: Unified Tax Record and Fair Treatment
Officials said the move aims to improve tax database integration, eliminate duplication, and ensure consistent treatment of taxpayers across Pakistan, Azad Jammu and Kashmir, and Gilgit-Baltistan.
By aligning regional and federal taxpayer records, the government intends to strengthen tax compliance, improve transparency, and simplify verification procedures for individuals living or working in disputed or semi-autonomous regions.
Impact on Taxpayers and Financial Transactions
Being listed on the Active Taxpayers’ List is critical in Pakistan, as non-filers face higher withholding taxes on banking transactions, property purchases, vehicle registration, and other financial activities.
The new policy allows eligible residents of AJK and GB to access the same tax benefits as federal ATL members without requiring separate federal registration, provided their tax status is verified through regional authorities.
