KARACHI: The Federal Board of Revenue (FBR) is complying with the tax laws while taking action against or sending notices to non-filers, the board’s chief said on Friday, suggesting that the ongoing drive led to a 24 percent rise in the number of return filers during the last year.
“Much time was given to encourage filing of the tax returns for the tax year 2016,” Chairman Muhammad Irshad at FBR answered to a question regarding bulk of notices issued by tax departments to non- and late filers, warning them to file returns or pay penalties.
“Relaxation was given only to those taxpayers who were willing to file returns and requested for extension in deadline,” Irshad said.
FBR head said taxpayers are too responsible to abide by the laws and pay taxes and declare assets for a year.
“Due to efforts of the tax departments, the return filings for the tax year 2016 so far surpassed 900,000, 24 percent higher than the returns filed for the tax year 2015,” he said.
He added that the enforcement drive helped the FBR increase the number of return filers in January. “Tax authorities gathered information of non-filers through deduction of withholding taxes.”
The government imposed 0.6 percent withholding tax on banking transactions other than through cash from July 1, 2015, payable by non-filers.
However, after the business and trade community protest, the rate was cut to 0.3 percent from July 11, 2015, but it was increased to 0.4 percent from March 2016. The reduced rate facility was available till December 31, 2016. The FBR, however, extended this till March 31 this year.
Number of return filers for the tax year 2015 increased to 1.2 million, according to the latest active taxpayers list (ATL). Taxpayers, enlisted in the ATL 2016, would only be able to avail the reduced rate of withholding tax.
Irshad said ATL 2016 would be issued by March. He urged the taxpayers to file their annual returns to avoid automatic selection of audit.
He believed that revenue collection target of Rs3.621 trillion for the current fiscal year of 2016/17 would be achieved. “The revenue collection in the first six months is satisfactory,” he said. “Hopefully, the accelerated economic activities will boost the revenue collection.”
The FBR collected Rs1,467 billion during the first half of 2016/17 fiscal year as against Rs1,390 billion in the corresponding period a year ago.
