FBR Updates Active Taxpayers List for 2026, Removes Non-Filers and Announces Surcharges

• The Federal Board of Revenue (FBR) has removed taxpayers who failed to submit their income tax returns by October 31, 2026, from the updated Active Taxpayers List.
• Individuals excluded from the list will face higher withholding tax rates on applicable transactions and may experience delays in receiving tax refunds.
• Late filers must pay additional surcharges of Rs25,000 for individuals, Rs50,000 for associations and Rs100,000 for companies to regain active taxpayer status, according to the reported announcement.

The Federal Board of Revenue (FBR) has initiated action against taxpayers who failed to submit their income tax returns for the tax year 2026, removing their names from the updated Active Taxpayers List (ATL) and imposing additional financial requirements for restoring their active status.

According to FBR sources, the tax authority has revised the Active Taxpayers List for 2026, excluding individuals, associations and companies that did not file their income tax returns by the October 31 deadline.

The move comes after the FBR extended the deadline for filing income tax returns twice, providing taxpayers with additional opportunities to fulfil their obligations before the updated list was issued.

Officials said taxpayers whose names have been removed from the ATL will now face higher withholding tax rates on various financial and commercial transactions. In certain cases, the applicable tax rate may be twice the rate charged to active taxpayers.

The revised status could affect several transactions, including those involving banking, property, vehicles and other activities subject to different withholding tax rates based on a taxpayer’s filing status.

The FBR has also clarified that submitting an overdue income tax return will not automatically restore a taxpayer’s name to the Active Taxpayers List.

Taxpayers who file their returns after the prescribed deadline will be required to pay an additional surcharge to regain active status, even after successfully submitting their returns.

According to the reported details, individual taxpayers will have to pay a surcharge of Rs25,000 to restore their names to the ATL. Associations of persons will be required to pay Rs50,000, while companies will face a surcharge of Rs100,000.

The authority has also addressed cases involving taxpayers who submitted applications seeking further extensions for filing their income tax returns.

Officials explained that some taxpayers who requested additional time have not been included in the updated Active Taxpayers List because their applications are still awaiting approval.

Such taxpayers will continue to be classified as inactive until their extension requests are approved and their eligibility for inclusion in the list is established.

The consequences of exclusion from the ATL may extend beyond higher withholding taxes. According to FBR sources, taxpayers who remain outside the active list could also encounter difficulties in obtaining tax refunds.

Additionally, failure to comply with filing requirements may affect the ability of certain businesses to carry forward tax losses into subsequent tax years, depending on the applicable provisions of income tax law.

The FBR’s action is being implemented in phases, with the removal of non-compliant taxpayers from the Active Taxpayers List forming the first stage.

Sources indicated that further enforcement measures could follow in the second phase as the tax authority continues efforts to improve income tax compliance and ensure timely submission of annual returns.

Taxpayers who have been excluded from the updated list can check their filing status through the FBR’s official Active Taxpayers List system and complete the necessary requirements for restoring their active status.