The federal government has proposed a significant increase in fees for restoring a taxpayer’s status on FBR Active Taxpayers List (ATL) under the Finance Bill 2026.
According to the proposal, individuals who file their income tax returns after the deadline will now have to pay Rs. 25,000 to regain their active taxpayer status. This is a sharp increase compared to the current fee of Rs. 1,000.
For Associations of Persons (AOPs), the restoration fee is expected to rise to Rs. 50,000. For companies, the proposed charge will increase further to Rs. 100,000. These changes represent a major adjustment in the cost of becoming an active taxpayer again after missing the deadline.
Officials say the main purpose of this proposal is to encourage people and businesses to file their tax returns on time. By increasing the penalty for late filing, the government aims to improve overall tax compliance and reduce delays in return submissions.
Authorities also believe that stricter financial penalties will help expand the tax base and increase government revenue collection. The new policy is expected to take effect from July 2026 if it is approved in the final budget.
Tax experts say the move could push more taxpayers to meet deadlines, as the cost of late filing will become much higher than before. However, some observers also believe it may create financial pressure on small businesses and individuals who miss deadlines due to genuine reasons.
