The Federal Board of Revenue (FBR) has exceeded its revenue target for the fourth consecutive month, amassing Rs2.75 trillion in the July-October period. Due to a lackluster response from the public, the FBR plans to pursue one million non-filers of income tax returns.
Although the FBR exceeded the July-October tax collection goal by Rs68 billion, it fell short of the total returns filed in the 2022 tax year by nearly two million, which accounts for 40% of existing filers.
Malik Amjad Zubair Tiwana, Chairman of the FBR, stated that the deadline for filing annual income tax returns, which expired on Tuesday, would not be extended further. The FBR is determined to ensure the “mandatory registration” of at least one million individuals who were required to file returns but failed to do so.
The provisional tax collection of Rs2.75 trillion in July-October exceeded the target of Rs2.68 trillion, relieving pressure from the International Monetary Fund (IMF) for a mini-budget.
Although the FBR achieved a 28% growth in tax collection, collecting Rs591 billion more than the previous fiscal year, it faced challenges in ensuring timely filing of income tax returns. Only 2.9 million tax returns were received by the extended deadline, compared to 4.9 million returns filed in the last tax year.
Significantly, out of over 10 million registered individuals and companies with the FBR, around 7.1 million did not file their annual returns. The FBR chairman emphasized their commitment to expanding the tax base and announced that notices would be issued to individuals who paid significant withholding taxes but did not file tax returns.
