Pakistan tax filings surge 45pc to 5.77m, but payments with returns fall 7pc

Pakistan’s Federal Board of Revenue says income tax returns filed by the Sept 30 deadline surged nearly 45pc year on year to 5,767,384, up from 3,980,692 — about 1.79 million additional filers — with traders, shopkeepers and other non-salaried individuals driving around four-fifths of the increase (https://www.brecorder.com/news/amp/40442093).

Non-salaried returns rose 60pc to 3.81 million and now make up roughly two-thirds of all filings. Salaried returns grew 22pc to 1.9 million and association-of-persons returns rose 33pc to 53,756. Returns above the taxable threshold increased 37pc to nearly 2.5 million, although around 39pc of all returns were nil.

Tax paid with returns fell about 7pc to Rs77.3 billion from Rs83.3 billion: individuals paid 11pc more (Rs34.5bn) and associations of persons 16pc more (Rs3.7bn), but company payments dropped from Rs49bn to Rs39.1bn, with only 7,953 company returns filed against 11,206 last year. The FBR said companies had delayed filing in anticipation of a deadline extension (https://www.arabnews.pk/pakistan/pakistan-tax-authority-says-filings-rise-45-percent-but-payments-accompanying-returns-fall-3002840).

The FBR extended the deadline from Sept 30 to Oct 15 under Section 214A after requests from trade bodies and tax bars; the FPCCI had sought Oct 31, while the Karachi Tax Bar Association cited IRIS portal glitches (https://www.dawn.com/news/2033760). Chairman Rashid Mahmood Langrial warned retailers under the Tax Asaan Scheme they face enforcement within a month if they fail to file (https://www.dawn.com/news/2033868).

Broadening the tax base underpins Pakistan’s $7bn IMF programme. “Bringing people into the net is the easier half of the task. The harder half is ensuring that what they declare is accurate,” the FBR said.