The Federal Board of Revenue (FBR) has successfully met its revenue target for the fourth consecutive month, amassing a total of Rs2.75 trillion during the July-October period. In response to a lackluster public response, the FBR is gearing up to pursue one million individuals who have failed to file their income tax returns.
Although the FBR exceeded the July-October tax collection target by Rs68 billion, it still fell short by nearly two million returns compared to the 2022 tax year, representing 40% of the current filers.
Malik Amjad Zubair Tiwana, Chairman of the FBR, has affirmed that the deadline for filing annual income tax returns, which expired on Tuesday, will not be extended further. The FBR is resolute in its mission to ensure the “mandatory registration” of at least one million individuals who were obligated to file returns but did not comply.
The provisional tax collection of Rs2.75 trillion from July to October has exceeded the target of Rs2.68 trillion, relieving any pressure from the International Monetary Fund (IMF) for a supplementary budget.
Although the FBR achieved a 28% growth in tax collection, surpassing the previous fiscal year by Rs591 billion, it encountered difficulties in prompting timely income tax return submissions. Only 2.9 million tax returns were received by the extended deadline, a significant drop from the 4.9 million returns filed in the previous tax year.
It’s worth noting that out of the more than 10 million registered individuals and companies with the FBR, approximately 7.1 million failed to file their annual returns. The FBR chairman is committed to expanding the tax base and intends to send notices to individuals who have paid substantial withholding taxes but have not filed their tax returns.