FBR receives 2.3 million returns for tax year 2020

FBR receives 2.3 million returns for tax year 2020

ISLAMABAD: The Federal Board of Revenue (FBR) has received 2.3 million income tax returns for the tax year 2020 by December 31, 2020, according to an official statement released on Friday.

The impressive number reflects the commitment of taxpayers to fulfill their obligations and contributes to the overall tax collection efforts of the government.

The last date for filing income tax returns for salaried individuals, business entities, Association of Persons (AOPs), and companies with special financial years was December 08, 2020. For corporate returns, the deadline was extended until December 31, 2020. The FBR had received 1.79 million returns by the initial deadline of December 08, 2020.

It’s noteworthy that the FBR did not extend the filing date beyond December 08, 2020, for salaried persons, business individuals, AOPs, and companies with special financial years. This marked a departure from previous years, where deadline extensions were occasionally granted.

In its statement, the FBR highlighted that this year, after several years, the last date for filing income tax returns was not extended, reinforcing the adherence to the stipulated deadlines. By December 31, 2020, the FBR received a total of 2.3 million returns, and the payments accompanying these returns amounted to Rs43.5 billion.

Comparatively, by December 31, 2019, the number of returns filed stood at 2.173 million, with a total payment of Rs28 billion. This indicates not only an increase in the number of returns but also a substantial growth in revenue collection, showcasing the effectiveness of the tax collection mechanisms and the willingness of taxpayers to meet their financial obligations.

The FBR’s achievement in receiving 2.3 million returns is a positive sign for the country’s fiscal landscape, especially amid the challenges posed by the global economic scenario and the ongoing efforts to recover from the impact of the COVID-19 pandemic. The revenue body emphasized the significance of this accomplishment and the considerable amount of Rs43.5 billion collected, contributing to the government’s revenue pool.

The successful completion of the income tax return filing process for the tax year 2020 underscores the cooperation between taxpayers and tax authorities. It reflects a commitment to financial transparency and responsibility, essential elements for the economic well-being and growth of the country.

The FBR’s receipt of 2.3 million income tax returns by the end of 2020 signifies a positive development in Pakistan’s fiscal landscape. The notable increase in returns and the substantial revenue collection demonstrate the effectiveness of the tax system and the commitment of taxpayers to meeting their financial responsibilities. This achievement is pivotal in contributing to the government’s revenue stream and supporting economic stability in challenging times.