Federal Bureau of Revenue (FBR) has reported that it has successfully achieved its five-month tax goal due to improved and enhanced performance by Pakistan Customs.
As per details, more than one million people have submitted their annual income tax returns as there is only a week left in the expiration of extended deadline by FBR which has hoped for 1.9 people being included in its tax net.
Achieving its five-month target, FBR has collected of Rs 1.686 trillion by the end of November. The tax target for July-November was set at Rs 1.67 trillion which in fact was 33.7 per cent of the gross annual target.
Pakistan Customs has reported tax collection of Rs263 billion during the first five months of the current financial year against the target of Rs 231 billion.
Meanwhile, Special Assistant to Prime Minster (SAPM) on Revenue – Dr Waqar Masood Khan has said that government will revise and reconsider the annual tax collection target of Rs 4.963 trillion.
It is to be noted that FBR had extended its deadline for submitting annual tax returns from the previous September 30th to December 8th.
According to FBR statistics, around 1.07 million individuals and firms have submitted their annual income tax returns in contrast with the 1.7 million figure during the same time-period in 2019 last year.
In order to match last year’s figure, FBR need to be receiving 235,000 annual tax returns on a daily basis.
Experts have cited two options for FBR, i.e. to further extend its deadline with a minor penalty or enforce pragmatic actions against those who have failed to submit annual tax returns.
FBR ‘s tax collection has reflected a 4.2 per cent or 69 billion increase against 2019’s Rs 1.62 trillion during the same time period.
Country’s cumulative growth in revenue collection during these five months have been recorded at 4.2 percent which is insufficient and must be more than 22 per cent to achieve annual tax collection target of Rs 4.693 trillion.
Furthermore, income tax share in gross tax collection has further shrunk and is reported to be around 35 per cent.
The International Monetary Fund (IMF) has predicted an overall shortfall of more than Rs 300 billion in annual tax collection target.
