KARACHI: Federal Board of Revenue (FBR) may allow taxpayers who filed their returns after due date to have their names on Active Taxpayers List (ATL).
FBR sources said that the finance ministry had asked the revenue body to review the issue. The ministry of finance had received many representations on the issue.
The government through Finance Act, 2018 introduced Section 182A of Income Tax Ordinance, 2001 to restrict late filers of income tax to appear on ATL for tax year 2018.
The ATL for the tax year 2018 issued by the FBR on March 01, 2010 showed around 1.6 million return filers by due date for salaried class, business individuals and corporate entities i.e. December 15, 2018 and December 31, 2018.
The last ATL for tax year 2017 issued by the FBR had shown around 1.84 million active taxpayers on the list. This means the FBR has lost around 240,000 active taxpayers on the list.
Pakistan Tax Bar Association (PTBA), the apex tax bar of the country, urged the FBR to delete this section as this would result in discouraging potential taxpayers to become filers.
“It will be another disaster like the provision of Section 214D of the Ordinance, which created huge pendency of tax audt cases approximately 1.2 million and finaly the government created facility for the existing taxpayers by introducing Section 214E of the Ordinance for disposal / closure of such cases in the Finance Supplementary (Amendment) Act, 2018.”