Sunday Dec 27, 2020
The Federal Board of Revenue (FBR) has served notices to 832,000 non-filers for failing to declare their tax returns during the current fiscal year after receiving over 2.2 million income tax returns along with a paid tax of Rs35 billion so far, The News reported on Sunday.
The Special Assistant to the Prime Minister (SAPM) on Revenue Dr Waqar Masood told The News that the total number of filed returns were recorded at 2,215,125 (2.215 million) along with a paid tax amount of Rs35 billion so far.
“The paid tax amount along with the income tax returns has doubled in the current fiscal year,” he added.
The revenue board had received a total of 2.7 million tax returns during the last fiscal 2019-20, leaving a gap, so notices have been sent to those failing to file their income tax returns.
Official sources revealed that there were 66,000 individuals who had sought a double extension for 15 days.
Despite the extension in the date to file the tax returns, there were 832,000 filers who neither filed their returns nor sought extension.
“We have served them tax notices to ascertain why they did not bother to file their returns,” official FBR sources said, adding that the law would take its course if the reply was not received or was found unsatisfactory.
The FBR has achieved over 4% revenue growth in the first five months of the current fiscal year and for achieving the desired tax collection target, it requires 40 per cent growth in the remaining seven months.
The FBR had envisioned a tax collection target of Rs4963 billion and the tax machinery fixed target of 45% for the first half of the current fiscal year.
The efforts are underway to achieve the desired results as the FBR’s target of December 2020 showed significance.
It is a challenge for the incumbent regime that the FBR’s tax collection remained flat at Rs4 trillion in the last two fiscal years 2018-19 and 2019-20.
The last fiscal year could be blamed on the eruption of the coronavirus pandemic for the flat revenue growth because, in the pre-coronavirus scenario, the FBR was achieving revenue growth in the range of 16 to 17 per cent that nosedived substantially after the outbreak of deadly Coronavirus.
This year, there is a twofold increase in income tax paid with the annual returns.
The number of Income Tax Returns for the previous year till the same period was 1.98 million and the tax paid was Rs16 billion.