Mini-budget worth Rs1 trillion on cards
Business
No extension to deadline for filing income tax returns: FBR
ISLAMABAD (Dunya News) - Following reports of Rs 150 billion shortfall in tax collection by the Federal Board of Revenue (FBR) a proposal to bring a mini-budget of one trillion is on the cards.
The Federal Board of Revenue (FBR) confirmed that there will be no extension to the September 30 deadline for filing income tax returns, despite an anticipated revenue shortfall.
As of now, 1.926 million individuals have submitted their returns, marking an increase of 205,000 filers compared to last year. However, officials highlight that last year saw a total of nearly 6 million returns filers.
FBR officials have expressed concerns over a significant revenue shortfall, with an estimated deficit of Rs150 billion expected for September alone. The board is reportedly considering a mini-budget proposal worth approximately Rs 1 trillion to address the growing fiscal gap.
Also read: FBR's digitisation, improved enforcement vital for economic reforms: PM
The total revenue shortfall over the past two months is projected to exceed Rs250 billion, threatening the government's ability to meet the Rs12.97 trillion tax target for the fiscal year.
In response to the shortfall, the FBR is contemplating measures such as imposing a uniform sales tax by withdrawing current exemptions and imposing withholding taxes.
With the International Monetary Fund (IMF) closely monitoring Pakistan's fiscal performance, the FBR faces immense pressure to meet its revenue targets, leaving little room for error.
New restrictions on non-filers
A new three-tiered policy targeting non-filers is under consideration to strengthen economic documentation. Under this proposed approach, non-filers will be barred from acquiring cars, immovable property, financial instruments, or opening bank accounts, except for the Asaan Account.
For those who report an income of over Rs10 million, all financial privileges will remain accessible under the first tier. However, individuals declaring less than Rs10 million in income must provide proof of their income sources before purchasing cars, property, or financial instruments, although they will still be allowed to open bank accounts.
To address this, the proposed strategy includes measures such as disallowing input tax credits on sales to unregistered entities and implementing digital invoicing to track unregistered buyers.
