The Federal Board of Revenue (FBR) has achieved its revenue target for the fourth month in a row, accumulating Rs2.75 trillion in the July-October period. In response to a sluggish response from the public, the FBR is set to pursue one million individuals who have not filed income tax returns.
Exceeding the July-October tax collection goal by Rs68 billion, the FBR still fell short of the total returns filed in the 2022 tax year by nearly two million, which accounts for 40% of the existing filers.
Malik Amjad Zubair Tiwana, Chairman of FBR, confirmed that the deadline for filing annual income tax returns, which ended on Tuesday, would not be extended any 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 surpassed the target of Rs2.68 trillion, relieving any pressure from the International Monetary Fund (IMF) for a mini-budget.
While the FBR achieved a 28% growth in tax collection, securing 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.
Notably, out of over 10 million registered individuals and companies with the FBR, approximately 7.1 million did not file their annual returns. The FBR chairman is committed to expanding the tax base and plans to issue notices to individuals who have paid significant withholding taxes but have not filed tax returns.
