FBR will now include eligible taxpayers from AJK and Gilgit-Baltistan in the federal Active Taxpayers’ List, aligning tax records and ensuring consistent treatment across regions.
Unified Active Taxpayers’ List for Pakistan, AJK and Gilgit-Baltistan
The Federal Board of Revenue (FBR) has decided to formally bring taxpayers from Azad Jammu and Kashmir (AJK) and Gilgit-Baltistan (GB) into the federal tax framework by including their names in the Active Taxpayers’ List (ATL).
Officials said that any person 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 treated as an active taxpayer under Pakistan’s federal income tax regime, subject to specific conditions.
Legal Basis: Changes Under SRO 17(I) 2026 and Income Tax Rules
The decision has been implemented through SRO 17(I) 2026, which amends the Income Tax Rules 2002. Under the new rule, the federal ATL can recognise taxpayers based on their appearance on the AJK or GB Active Taxpayers’ Lists, in line with Section 181A of the Income Tax Ordinance.
In practice, if a taxpayer is already listed as active on the ATL of the AJK Central Board of Revenue or the Gilgit-Baltistan Council Board of Revenue, their status can be mirrored on the federal ATL, provided their address and income sources meet the criteria laid down in the notification.
The FBR clarified that automatic inclusion will apply where an individual’s temporary or permanent address is in AJK or Gilgit-Baltistan and there is no indication of employment or business in mainland Pakistan that would require filing under the federal system.
Verification for Taxpayers With Addresses in Both Jurisdictions
For people who have temporary or permanent addresses both in Pakistan and in AJK or Gilgit-Baltistan, a verification mechanism has been introduced to prevent duplication and uncertainty over where tax should be paid.
Under this mechanism, the Commissioner Inland Revenue having jurisdiction based on the person’s temporary address on their Computerised National Identity Card (CNIC) will use the IRIS system to verify that the individual does not have any employment or business in Pakistan. This step will be completed after inquiries and obtaining an undertaking from the taxpayer.
At the same time, the concerned commissioner in AJK or GB will confirm through IRIS that the individual has employment or a sole business in AJK or Gilgit-Baltistan. Only after both verifications are positive can the person’s name be retained on the federal ATL on the basis of their AJK or GB tax status.
Conditions for Removal From the Federal ATL
The FBR has also laid down circumstances in which such taxpayers can be removed from the federal Active Taxpayers’ List. If at any later stage the Commissioner Inland Revenue has reason to believe that a person is required to file an income tax return under Section 114 of the Income Tax Ordinance and they do not comply with a notice issued under the law, their name may be struck off the ATL.
This safeguard is intended to ensure that the facility of recognition through AJK or GB tax status is not used by individuals who actually have taxable employment, business or other income in Pakistan but are trying to avoid federal filing obligations.
Better Integration and Consistent Treatment for AJK and GB Taxpayers
FBR officials say the inclusion of AJK and Gilgit-Baltistan taxpayers in the federal ATL is part of a broader effort to align tax administration across different jurisdictions and close information gaps between federal and regional authorities.
By using the IRIS system to cross-check records and recognise taxpayers who are already active in AJK or GB, the authorities aim to build a more coherent national view of tax compliance, regardless of where a person is based.
For individuals and businesses in AJK and Gilgit-Baltistan, the change should reduce confusion in dealings with banks, property registries and other institutions that rely on the federal ATL. In the long run, a more integrated system can support fairer treatment and easier movement of economic activity across regions.
