Pakistan sees a 63% increase in income tax collection

The returns are higher by 4%, and the tax deposited is higher by 63%.

  • The FBR has received the highest ever sum of income tax at the time of filing this year.
  • It has also received a record number of returns this year.

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The FBR (Federal Board of Revenue) has received a record number of returns this year, along with the highest ever sum of income tax at the time of filing.

According to a statement issued by the FBR on Wednesday, “A total of almost 1.8 million returns have been filed together with a sum of about Rs. 22 billion. Last year, around this time, 1.73 million returns were filed while around Rs. 13.5 billion were deposited as income tax.”

Relatively, the returns are higher by 4%, and the tax deposited is higher by 63%.

It is important to note that the authorities have decided not to extend the tax filing deadline of 8 December 2020 to restore the credibility and predictability of the final date and promote tax discipline.

Nevertheless, to ensure that taxpayers faced no hardship, several special measures were adopted.

Some of the measures adopted were liberal acceptance of requests for extension in filing date as available under the law, filing claims manually besides the online facility, and enabling tax practitioners to file a single license for multiple clients.

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The measures have encouraged a large number of taxpayers to file extension requests, the statement read.

It is forecasted that at least 300,000 taxpayers have made use of this facility, thus taking the number of prospective returns to 2.1 million, which is 21% higher compared to last year until this date.

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The FBR commended the taxpayers’ determination and the support it received from members of tax bars from all over the state, who have made such record-setting returns and income tax payments possible.

The results establish that the resolution not to allow general extension in the last date would go a long way toward restoring much-needed trust and credibility of the tax system.

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