ISLAMABAD: The number of income tax returns filed surged nearly 45 percent year-on-year to 5.77 million by September 30, with traders, professionals and other non-salaried individuals accounting for around four-fifths of the increase, official data revealed Wednesday.
According to Federal Board of Revenue (FBR) data, 5,767,384 income tax returns had been filed by September 30, compared with 3,980,692 returns on the same date last year, reflecting an increase of about 1.79 million filings in one year.
The latest increase continues the sharp expansion in the tax filing base witnessed over the past three years. Returns filed by the end of September stood at 1.86 million in 2022, 1.92 million in 2023, 3.72 million in 2024, 3.98 million in 2025 and 5.77 million this year—almost three times the 2022 level.
The composition of new filers has also changed significantly, with the non-salaried segment emerging as the main source of growth.
Returns filed by non-salaried individuals—including traders, shopkeepers, professionals and self-employed persons—increased 60 percent to 3.81 million from 2.38 million last year. The addition of 1.43 million non-salaried filers represents around four-fifths of the total increase.
Non-salaried returns stood at only 965,000 five years ago and accounted for roughly half of all filings. They now represent around two-thirds of total returns.
Salaried returns increased 22 percent to 1.9 million, while returns filed by associations of persons, including partnerships, rose 33 percent to 53,756.
The increase in filer numbers, however, does not necessarily translate into a corresponding rise in tax collection. Around 39 percent of returns filed this year were nil returns, broadly unchanged from last year.
At the same time, returns declaring income above the taxable threshold increased 37 percent from 1.82 million to nearly 2.5 million. Among non-salaried individuals, such returns rose 47 percent, while the increase among salaried persons was 32 percent.
Payment filers—those showing tax paid with their returns—increased 38 percent to 3.35 million. Within the non-salaried category, payment filers rose around 50 percent to 1.75 million. Five years ago, returns above the taxable threshold numbered around 900,000, while payment filers stood at 1.29 million.
Tax paid with returns by individuals increased 11 percent to Rs34.5 billion, while tax paid by associations of persons rose 16 percent to Rs3.7 billion.
The corporate segment, however, recorded a decline. Only 7,953 company returns had been filed by September 30 compared with 11,206 on the same date last year. Tax paid with company returns also fell to Rs39.1 billion from Rs49 billion.
Consequently, total tax paid with returns by September stood at Rs77.3 billion, around 7 percent lower than Rs83.3 billion recorded last year, despite the substantial increase in the number of filers.
FBR officials attributed the decline in company filings largely to timing, saying many companies had delayed filing in anticipation of an extension in the filing deadline. The deadline has now been extended, and officials expect company returns and associated payments to increase in the coming weeks.
The rise in filings has been attributed by officials to improved use of third-party data, a simplified return filing process and stronger enforcement.
Information from banks, property registries, vehicle registration records and withholding statements is being matched against tax returns to identify persons with taxable capacity who have not filed returns.
Officials also pointed to the simplified return, which enables many salaried individuals and small businesses to file without professional assistance. Restrictions on major economic transactions for non-filers have further increased the cost of remaining outside the formal tax system.
Copyright Business Recorder, 2026
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