Approximately 5,000 large companies account for 90% of Pakistan’s annual corporate tax revenue, despite around 125,000 companies being registered with the Securities and Exchange Commission of Pakistan (SECP).
According to the Federal Board of Revenue (FBR), out of the total registered companies, only 50,000 submit income tax returns. However, half of these filers, around 25,000, file “nil-returns,” indicating zero tax payments. This leaves about 5,000 major companies actively conducting business and shouldering nearly all corporate tax contributions.
The pattern is similar on the sales tax front. FBR data shows that out of around 200,000 companies registered for sales tax, only 40,000 to 60,000 actively pay sales tax, including those with minimal deposits, while the rest remain inactive.
Of the active corporate entities, around 300 companies belong to five leading sectors, further highlighting a narrow tax base dominated by a limited number of large players.
