- The number of women tax filers in Pakistan drastically dropped from 1,290,832 in 2023 to 100,247 in 2024, with “Individual Active Women Taxpayers” significantly declining.
- Associations of Persons (AOPs) with 50% or more women members remain steady at 22,088, while companies with at least 50% women directors saw growth, increasing from 20,671 in 2022 to 41,629 in 2024.
- To support women entrepreneurs, the FBR plans to publish biannual data categorizing women taxpayers into three groups: individual active taxpayers, active AOPs with a majority of women members, and companies with a majority of women directors.
The Federal Board of Revenue (FBR) has unveiled startling data highlighting a steep decline in women entrepreneurs filing income tax returns in Pakistan. During the 2023 tax year, 1,290,832 women filed their returns. However, this figure plummeted dramatically to just 100,247 in 2024.
Decline in Individual Women Tax Filers
The FBR report indicates that the number of “Individual Active Women Taxpayers” declaring income from business activities decreased significantly from 138,841 in 2023 to 100,247 in 2024. This group constitutes the largest proportion of women listed on the FBR’s Active Taxpayers List (ATL).
Women Representation in AOPs and Companies
There are currently 22,088 active taxpayers in the category of “Active Taxpayers (Associations of Persons—AOPs)” with 50% or more women members. Meanwhile, companies with at least 50% women directors have shown notable growth. Their numbers increased from 20,671 in 2022 to 41,629 in 2024.
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FBR’s Commitment to Women Entrepreneurship
To support women entrepreneurs and encourage their participation in the formal economy, the FBR has pledged to publish updated data on women taxpayers biannually. This data will be categorized into three groups:
- Individual Active Taxpayers: Women declaring business income, including income under the presumptive tax regime.
- Active Associations of Persons (AOPs): AOPs with 50% or more women members.
- Companies with 50% or More Women Directors: Businesses where women hold at least half of the directorships.
According to the FBR, there are currently 1,064,639 women engaged in businesses in Pakistan whose names appear on the Active Taxpayers List. This initiative aims to enhance transparency and provide a clear picture of women’s participation in Pakistan’s economic landscape.
Published Data on Women Taxpayers
As part of its efforts, the FBR has already released data for the 2024 tax period. The report underscores the challenges faced by women entrepreneurs, particularly the sharp decline in individual active filers. However, the rise in companies led by women directors indicates a positive trend in women’s leadership in corporate settings.
Reasons Behind the Decline in Women Tax Filers
- Economic Challenges: The overall economic downturn, inflation, and financial constraints have made it difficult for women entrepreneurs to sustain their businesses, leading to reduced tax filings.
- Lack of Awareness: Many women, particularly in rural areas, are unaware of the tax filing process and its benefits, contributing to lower compliance.
- Administrative Barriers: Complex tax regulations, limited access to digital resources, and bureaucratic hurdles discourage women from participating in the formal tax system.
- Socio-Cultural Constraints: Traditional gender roles and societal expectations often limit women’s participation in business and financial activities.
- Policy Gaps: Inadequate incentives and support for women-owned
The Way Forward
The FBR’s biannual reports will serve as a critical resource for tracking progress and identifying gaps in women’s economic participation. By addressing the barriers to tax compliance and promoting policies that empower women entrepreneurs, the FBR aims to foster a more inclusive and dynamic economic environment in Pakistan.
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