Number of tax return filers increases to hit record 1.96 million

KARACHI: Number of tax return filers has increased around seven percent year-over-year to hit the record 1.96 million for the tax year 2018 as the government extended the deadline of filing three times to April 30, sources said on Wednesday.

The FBR received 1,963,348 returns by April 30, 2019, which was the last date for filing of income tax returns for tax year 2018. The revenue body received 1.84 million income tax returns for the tax year 2017.

The sources said the FBR is expecting the number of return filers to cross two million by June 30 if the government unveils assets declaration scheme, which is currently under discussion, as the amnesty would open up to declaration of more income and wealth statements.

The sources said the government planned the amnesty scheme in the ongoing quarter of the current fiscal year. The deadline of returns filing may further be extended till the amnesty scheme is applicable. The FBR received around 78,000 income tax returns in the amnesty scheme for local and foreign assets introduced last year.

The FBR extended the last date for filing of income tax returns for the tax year 2018 up to December 15, 2018 for salaried individuals from August 31 and for business individuals from September 30, 2018.

But, the number of returns filing slowed as the government introduced an amendment into the Income Tax Ordinance 2001 through Finance Act 2018 under which an income tax return filer would be treated as non-filer if he submits returns after due date. Consequently, the FBR could be able to receive only 1.59 million returns for the tax year 2018 up to February 28, 2019.

On March 15, the FBR extended the last date for filing of income tax returns for tax year 2018 to March 31, 2019 on the demand of stakeholders to facilitate the late filers to be included in active taxpayers list. The date was further extended till April 30, 2019 in order to enhance the number of return filers. The FBR received around 370,000 income tax returns for tax year 2018 between March 15 and April 30, 2019.

The appearance of name on the ATL is important for availing reduced rates of withholding tax in making certain financial transactions.

The FBR sources said the revenue body evolved strategy to make substantial increase in number of return filers.

The FBR has so far issued around 4.3 million national tax numbers and all the NTN holders are required to file income tax returns.