ISLAMABAD – September 14, 2024 – The Federal Board of Revenue (FBR) is ramping up its efforts to ensure timely collection of advance tax payments from banks and the corporate sector as it aims to meet its quarterly revenue target of Rs2.652 trillion for the fiscal year 2024-25.
Advance Tax Collection Push
Sources reveal that the FBR has instructed its field formations to prioritize the collection of advance tax, focusing particularly on the top 10 cases in their respective areas. Banks are required to make monthly advance tax payments, while corporate entities are expected to remit the first instalment of their advance tax by September 15.
Last fiscal year, the FBR collected Rs357 billion in advance tax during the first quarter. For the current fiscal year, the FBR anticipates a higher collection, projecting to gather over Rs400 billion in advance tax for the first quarter. This increase is critical for achieving the ambitious revenue targets set for the period.
Focus on Corporate Sector and Banking
The Large Taxpayers Offices (LTOs) are actively pursuing banking institutions to ensure the timely payment of advance tax instalments. Similarly, corporate entities are required to adhere to the advance tax payment schedule under Section 147 of the Income Tax Ordinance, 2001, which mandates quarterly payments.
Despite these measures, there are concerns that the FBR might impose exaggerated tax demands on companies to generate additional revenue. Tax experts suggest that prior to the September 15 deadline, there may be orders issued for advance tax payments that could include inflated amounts. In cases of non-compliance, the FBR is prepared to attach bank accounts and recover the due taxes.
Addressing Sales Tax Trends
In addition to advance tax collection, the FBR is also addressing negative trends in sales tax. The agency is closely monitoring sales tax compliance and taking necessary actions to improve collections. This comprehensive approach is part of the FBR’s strategy to meet its overall revenue goals for the current fiscal year.
The FBR’s intensified efforts reflect the urgent need to boost revenue collection and ensure financial targets are met. As the deadline approaches, the focus remains on enforcing timely payments and addressing any discrepancies in tax demands.
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