World News | More Tax Returns, Lower Payments: Pakistan Faces Revenue Challenge
Get latest articles and stories on World at LatestLY. Pakistan has recorded a sharp rise in the number of income tax return filers, but the increase has not translated into higher tax payments, with the amount paid alongside returns falling by 7 per cent, Geo News reported.
Islamabad [Pakistan], October 2 (ANI): Pakistan has recorded a sharp rise in the number of income tax return filers, but the increase has not translated into higher tax payments, with the amount paid alongside returns falling by 7 per cent, Geo News reported.
According to data compiled by Pakistan’s Federal Board of Revenue (FBR), taxpayers paid Rs 77.3 billion with their income tax returns up to September 30, compared with Rs 83.3 billion during the same period last year, the report said.
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The data showed that nearly 1.79 million additional returns were filed during the ongoing fiscal year. However, the report highlighted that around 39 per cent of the returns filed this year were nil returns, meaning taxpayers reported no income tax payable.
Returns declaring income above the taxable threshold increased by 37 per cent, rising from 1.82 million to nearly 2.5 million. Among non-salaried individuals, such returns increased by 47 per cent, while the figure for salaried taxpayers rose by 32 per cent.
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According to the report, the increase in filings was driven largely by non-salaried individuals. Their returns rose by 60 per cent, from 2.38 million to 3.81 million, adding around 1.43 million returns, The Geo News reported. Salaried individuals recorded a comparatively smaller 22 per cent increase, reaching about 1.9 million returns.
Despite the larger number of filers, tax paid by companies declined significantly.
Pakistan’s latest tax figures point to continuing pressure on its revenue system, with a rise in the number of tax filers failing to deliver higher payments. While more people are entering the tax net, a large share of returns report little or no tax liability.
The decline in tax payments by companies also adds to concerns over revenue collection. The figures highlight the challenge before Pakistan’s authorities to broaden the tax base while ensuring accurate income reporting and stronger compliance. (ANI)
(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)