ISLAMABAD – A major proposal to radically simplify Pakistan’s cumbersome tax filing system has been unveiled, with business leaders and policy experts calling for the introduction of a one-page income tax return form aimed at increasing the country’s filer base from the current 7 million to as many as 100 million individuals. The proposal was presented by former minister and chairman Economic Policy and Business Development (EPBD) Dr Gohar Ejaz, who argued that Pakistan’s existing Federal Board of Revenue (FBR) tax return regime has become excessively complex and discourages ordinary citizens from entering the formal tax net.
Dr Ejaz shared with media that Pakistan’s current FBR income tax return form stretches to nearly 147 pages, yet the country has managed to register only around 7 million filers, of which merely 3 million are active taxpayers. Drawing a comparison with the United States, he noted that the US Internal Revenue Service (IRS) Form 1040 consists of only two pages, making compliance significantly easier for citizens. “Simple tax, strong Pakistan,” Dr Ejaz stated while unveiling a proposed one-page tax return form designed for individuals. According to the proposal, the simplified return would drastically reduce documentation requirements and eliminate complicated disclosure procedures that many salaried individuals and small taxpayers currently find intimidating. The proposed form includes only basic information such as personal details, CNIC number, income sources, deductions, tax computation and declaration — all consolidated onto a single page.
Policy experts backing the initiative say Pakistan’s tax system has long suffered from over-documentation, procedural complexity and weak public trust, factors that have contributed to widespread non-compliance and an extremely narrow tax base despite a population exceeding 240 million. Business leaders argue that simplifying the filing process could become the first major structural reform needed to improve voluntary tax compliance, reduce dependence on withholding taxes and broaden revenue collection without imposing additional burdens on existing taxpayers.
The proposal comes at a time when the government is under increasing pressure to raise Pakistan’s tax-to-GDP ratio and document the economy as part of ongoing fiscal reforms linked to the International Monetary Fund (IMF) programme. The EPBDTT proposal also seeks to align Pakistan’s tax administration with international best practices where simplified filing systems, digital returns and taxpayer-friendly procedures have significantly increased participation. The initiative has already triggered debate among economists, tax consultants and policymakers, many of whom see simplification of returns as essential for restoring public confidence in the taxation system. The latest proposal, therefore, places administrative simplification at the centre of tax reform and argues that ease of filing — rather than aggressive enforcement alone — may hold the key to dramatically expanding Pakistan’s taxpayer base.
