FBR Faced a Decline of 23% in Income Tax Returns
FBR had received 2.9m returns in the year 2019 which was the highest number in its history
The Federal Board of Revenue (FBR) faced a decline in income tax returns for the year 2020 as compared to the preceding year.
The board has so far received nearly 23 percent less tax returns ahead of the deadline of December 8.
Last year, the filed returns were 1.69 million while this year the board received 1.31 million including those of both salaried and non-salaried individuals.
However, the deadline for filing income tax returns was previously extended from September to December 2020.
FBR had received 2.9m returns in the year 2019 which was the highest number in FBR’s history.
The Pakistan Tax Bar Association has demanded a 60-day extension. However, Special Assistant to the Prime Minister for Revenue, Dr. Waqar Masood said that the last date for the submission of returns would not be extended.
Tax practitioners are allowed to obtain extensions for their clients. However, non-filers can take more time to submit their returns by submitting an application to the relevant office.
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No penalty will be levied on those who have sought an extension for filing tax returns.
Reasons for the reduction in tax return
Apart from the frequent replacement of Chairman FBR, the reason for the decline in income tax returns this financial year is being attributed to the coronavirus pandemic as well.
Abdul Qadir Memon, former President of Pakistan Tax Bar Association, told News 360 that the people in Pakistan have a firm belief that the deadline will be extended and hence, not submitting the tax returns on the due date.
He further said that even if the extension of 60 days was granted, people would wish for a new deadline. The challenge for the FBR this year is to cross last year’s target.
The filing of tax returns is mandatory for all commercial and industrial consumers of gas and electricity along with all salaried individuals with income in excess of Rupees 500,000.
FBR has also introduced a number of facilitations for the taxpayers including an online application facility.
