Karachi, October 27, 2024 – The Federal Board of Revenue (FBR) is set to initiate a sweeping crackdown on individuals who have failed to submit their income and asset declarations by the approaching October 31 deadline.
This decisive stance follows two previous extensions granted by the FBR, first on September 30 and subsequently on October 14, aimed at accommodating taxpayers and encouraging timely compliance.
Sources within the FBR confirm that there will be no further extensions. Instead, the board has crafted an exhaustive plan to take stringent action against defaulters who neglected to file their returns despite repeated extensions. This initiative is part of an intensified effort to increase compliance and revenue generation as the country continues to grapple with economic challenges.
As of October 26, the FBR has received a total of 4.821 million income tax returns for the tax year 2024, nearly doubling the 2.407 million returns filed by the same date in 2023. The surge in filings reflects heightened awareness and perhaps the looming threat of repercussions, yet a significant portion of these returns – approximately 1.820 million – reported nil income, indicating zero tax deposited. This figure represents a marked increase compared to 859,929 nil-income returns submitted out of the total 2.407 million in 2023.
FBR data further reveals that taxpayers submitted Rs 123 billion along with their 4.821 million returns for the current tax year, a stark contrast to the Rs 56.55 billion collected by this point in 2023. The increase underscores the FBR’s intensified measures and rigorous campaigns encouraging people to file comprehensive returns with due payments. Nevertheless, the agency remains cautious about the high volume of nil-filers, particularly among new registrants.
From July 1, 2023, to the present, the FBR registered 1,161,665 individuals, including 706,940 who declared nil-income. Of these, 528,638 were added since July 1, 2024, with 363,792 failing to report taxable income. This trend of nil-filing, especially among new registrants, remains a concern for the FBR as it seeks to broaden the tax base and improve revenue collection.
The FBR’s planned crackdown will likely target non-compliant individuals with punitive measures, including fines, penalties, and, where applicable, legal proceedings. The revenue body’s robust stance signals a turning point in Pakistan’s fiscal policy, underscoring the critical need for consistent tax compliance to stabilize and strengthen the national economy.
As the October 31 deadline looms, taxpayers are urged to fulfill their obligations promptly. The FBR’s preparations underscore a commitment to rectifying Pakistan’s tax culture, fostering accountability, and ensuring that each eligible citizen contributes to the nation’s economic resilience.