Effective policies expand income tax-return filing base by 43 percent
The government had already announced various measures in the federal budget.
(APP) – Owing to prudent, timely and swift tax reform policies of the incumbent government, the income return filing base has widened by around 43 percent to the record level of 2.5 million filers, as 750,000 new return tax-filers have registered themselves in the tax system till the last date, as indicated by official data.
Economic experts are of the firm belief that the country is in dire need to expand its tax-base to bear the expenditures and run the affairs of the state in smooth manner and it was in this perspective that the government had enhanced the revenue collection target up to Rs5.55 trillion for the current fiscal year (2019-20).
The government had already announced various measures in the federal budget and the Federal Board of the Revenue (FBR) had also been meticulously working on strategies to bring maximum number of people into tax net.
Tax collection increases by 60%
The Federal Board of Revenue (FBR) in one year under the federal government has increased 60 percent collection of (Inland Revenue) IR Domestic Taxes whereas broadening the Tax Base (Inland Revenue Policy) had achieved 99.2 percent target of taxes collection during the month of July 2019 by the IR-Operations Wing, which was Rs234 billion against the target of Rs236 billion of the assigned target.
Taxes collection during the month of July 2019 by the IR-Operations Wing is Rs234 Billion against the target of Rs236 Billion which is 99.2% of the assigned target.
The collection of IR Domestic Taxes in July 2019 has shown an increase of 60% compared to collection of July 2018.
The filing of returns of income for tax year 2018 has reached to the total number of 2,404,371 as compared to 1,486,756 returns filed for the tax year 2017 indicating a growth of 62 % over the last year.
During Fiscal year 2018-19 the number of new tax payers who filed returns of income is 348,140 as compared to 146,096 filed during 2017-18 registering an increase of 137%.
In July 2019 the collection of sales tax is Rs123.4 Billion which is 26.4% higher than the collection of sales tax in July 2018 which was Rs97.6 Billion.
Similarly, FED collection in July 2019 is 20% higher than the collection in July 2018.
However the tax collected under the Income Tax (other than Amnesty) in July 2019 is Rs85.2 Billion which is 42% higher than the collection of Income Tax in July 2018.
During last one year 6,451 high net worth cases were identified on the basis of economic transactions. Specialised units have been created within RTOs for fast track processing of these cases. As a result of which 2,989 returns have been enforced. Demand created is Rs4,915 million and the tax recovered is Rs1,648 million. Rs189 million have been paid by the taxpayers who availed the amnesty on the basis of the action taken by the specialized units.
Benami Transactions (Prohibition) Rule, 2019 vide S.R.O. 236(I)/2019 dated 11.03.2019 were issued by the IR-Operations Wing which created authorities to fucntion under the Benami Act.
