FBR Includes Gilgit-Baltistan Taxpayers in Federal Active Taxpayers’ List
ISLAMABAD: In a significant development affecting Gilgit-Baltistan, the Federal Board of Revenue (FBR) has decided to include taxpayers from Gilgit-Baltistan in Pakistan’s federal Active Taxpayers’ List (ATL). Previously, these taxpayers were listed only with the Gilgit-Baltistan Council Board of Revenue and were not reflected in the federal ATL.
To give effect to this decision, the FBR has issued SRO 17(I)/2006, amending the Income Tax Rules, 2002. Under the amended rules, individuals already appearing on the Active Taxpayers’ List of the Gilgit-Baltistan Council Board of Revenue will now also be included in the ATL maintained under Section 181A of the Income Tax Ordinance, 2001.
According to the notification, the name of a taxpayer will be included in the federal ATL if their temporary or permanent address registered on the CNIC is in Gilgit-Baltistan. The Commissioner Inland Revenue having jurisdiction on the basis of the taxpayer’s temporary address will verify, through the IRIS system, the non-existence of any employment or business activity in Pakistan after conducting an inquiry and obtaining an undertaking from the taxpayer.
At the same time, the Gilgit-Baltistan Council Board of Revenue will verify, via IRIS, whether the taxpayer’s employment or sole business activity exists within Gilgit-Baltistan. Once included in the federal ATL, such taxpayers will be required to file income tax returns under Section 114 of the Income Tax Ordinance. Failure to comply with a notice issued under sub-section (4) of Section 114 may result in removal of the taxpayer’s name from the Active Taxpayers’ List under Section 181A, the FBR notification stated.
The move is expected to provide Gilgit-Baltistan taxpayers relief in the form of lower withholding taxes and smoother financial transactions that require ATL status. At the same time, it may increase compliance obligations for individuals unfamiliar with federal tax filing procedures and the IRIS system. The verification mechanism is likely to bring greater scrutiny to cross-regional employment and business activities, reducing misuse but potentially affecting seasonal or mobile workers. While the decision integrates Gilgit-Baltistan taxpayers more closely into the federal tax framework, it also revives broader questions about taxation, representation, and the region’s constitutional status.
