FBR sees record rise in filing of returns, income tax

ISLAMABAD: The Federal Board of Revenue reported a 4% increase in the filing of tax returns. The collection rate was its highest at 63% (Rs22 billion) compared to last year.

The higher collection was attributed to improved compliance and an upgraded system.

FBR said it had opted not to extend the last date to file income tax returns beyond December 8, 2020 to restore the credibility and predictability of the final date and promote tax discipline, which worked.

Last year at this time, 1.73 million returns were filed, while about 13.5 billion were deposited as income tax.

The FBR shared that it had introduced several special measures to ease the process for taxpayers, including liberal acceptance of requests for extension in the filing date as available under the law, provision to file requests manually besides the online facility, enabling tax practitioners/advisers to file a single request for multiple clients and empowering the chief commissioners to set up special desks for collection of manual requests and sorting their jurisdiction at their level.

Read more: FBR receives 1.47m income tax returns on last date

The country’s tax collector said these measures encouraged taxpayers to file extension requests, which were being granted.

"It is estimated that at least 300,000 taxpayers utilised this facility, thus taking the number of potential returns to 2.1 million, 21% higher than last year until this date," the FBR said and clarified the process of filing was going on unabated.

A comparison with last year’s returns at the close of the deadline, June 30, 2020, will be meaningful when the number of additional returns to be filed until June 30, 2021, is available.

The FBR commended the determination of taxpayers and the support of the members of nationwide tax bars to make the filing of such record returns and payments possible.

Read more: FBR says date for filing income tax returns won't be extended beyond Dec 8

"This achievement establishes the decision to not grant a general extension in the last date has gone a long way toward re-establishing much needed trust and credibility of the tax system," the FBR said.