More tax returns, but is collection enough?

October 16, 2026

Pakistan has recorded an increase in income tax returns, with the number of people filing returns crossing 6.815 million. This is a positive sign for a country that has long struggled to bring more people into the tax system. However, the increase in filings should not be treated as proof that the government has solved its tax problems.

Official figures show that more than 4.5 million people outside the salaried class have filed their returns, while over 2.2 million salaried individuals have also completed the process. During the same period last year, more than 5.2 million people had filed returns. The increase suggests that more people are coming forward to meet their tax responsibilities.

Yet, the real test is not simply how many people file returns. It is how much tax they pay and whether the government is bringing more income groups into the system. Filing a return does not always mean paying more tax. The government must provide clear figures on tax collection to show whether this increase is making a real difference to national revenue.

Pakistan needs a fair tax system in which everyone who is legally required to pay tax does so. Salaried people already face tax deductions from their income, making it difficult for them to avoid their responsibilities. At the same time, many businesses and individuals outside the salaried class remain a challenge for tax authorities. This difference creates a sense of unfairness among those who pay tax regularly.

The small-retailer tax scheme also raises questions about the pace of progress. According to official sources, 2,875 shopkeepers have registered under the scheme, but only 1,473 have filed returns. This gap shows that registration alone is not enough. The government must ensure that registered traders complete the process and meet their legal duties.

However, tax enforcement must not become a source of harassment for small businesses. The government should make the process simple, explain the rules clearly and help traders understand their responsibilities. At the same time, it must act against those who deliberately avoid paying their due taxes.