Increasing tax collection has been a concern for the fallen economy. Hardly one million people pay taxes in Pakistan – or if they do, they don’t file the returns, resulting in their exclusion from the total number in the end.
Apart from the general public, 100 parliamentarians failed to file tax returns during the year 2017 as well. The numbers were revealed by the draft of the Fifth Tax Directory to be released by FBR (Federal Board of Revenue).
The number of lawmakers to not file income tax returns during the year 2016 stood at 116 while the figures were 120 in the year 2015. This year has shown a slight improvement but still depicts a large gap. reflecting negligence in the subject.
Sources said that FBR has decided to publish the Tax Directory for both parliamentarians and the general public. Summary of the publication has been approved by the finance ministry and is awaiting approval from the federal cabinet. After being approved by it, FBR Tax Directory 2018, that will present information for the year 2017, will finally be published.
As per the summary presented to the federal cabinet and reported by a local news source, FBR first started publishing the tax directory in the year 2013 to ensure high transparency. The move has been lauded by everyone and is appreciation worthy.
According to Section 216 (5) of the Income Tax Ordinance 2001, FBR can publish the details of taxpayers and their returns after acquiring approval from the federal cabinet. Sources also said that the taxes given by the parliamentarians will be revealed in the fifth edition of the tax directory.
1.2 million among Pakistan 208 million people’s population filed income tax returns during the last year. Among them, 500,000 paid zero taxes.
What are your thoughts on this? Share with us in the comments section below.