The income tax return filing in Pakistan has hit an all-time high, with a remarkable 3.53 million returns submitted for Tax Year 2020.
This unprecedented figure represents a substantial increase of 30 percent compared to the 2.72 million returns filed in the previous tax year of 2019.
The surge in tax compliance is not only reflected in the number of returns filed but is also evident in the tax deposits accompanying these submissions. According to data released by the Federal Board of Revenue (FBR), the tax deposited with the returns for Tax Year 2020 amounted to Rs51 billion. This marks a noteworthy increase of 54 percent compared to the Rs33 billion deposited in the preceding tax year.
These encouraging statistics signify a positive trend in tax compliance, showcasing a growing awareness and willingness among taxpayers to fulfill their fiscal responsibilities. The increase in both the number of returns filed and the associated tax deposits suggests a broader commitment to transparency and economic accountability.
One of the contributing factors to this surge in tax compliance is the integration of 11,744 point-of-sale terminals with the real-time reporting system of the FBR. This integration has not only streamlined the reporting process but has also provided tax authorities with a more accurate and up-to-date view of economic transactions across various sectors.
The utilization of technology and real-time reporting has proven to be instrumental in enhancing the efficiency of tax administration. It has allowed for more effective monitoring of economic activities, reducing the likelihood of tax evasion and ensuring a fair and equitable distribution of the tax burden.
The FBR’s efforts to encourage tax compliance have been evident through various initiatives, including awareness campaigns, simplified tax filing procedures, and the integration of technology-driven solutions. The positive response from taxpayers, as reflected in the surge in returns filed, indicates that these efforts are yielding tangible results.
The record-breaking number of income tax returns and increased tax deposits for Tax Year 2020 are not only indicative of improved compliance but also contribute significantly to the national exchequer. The additional revenue generated through these filings can be instrumental in supporting various government initiatives and development projects aimed at fostering economic growth and stability.
As the FBR continues to implement measures to facilitate taxpayers and enhance tax administration, the upward trajectory in tax compliance is expected to persist. The data for Tax Year 2020 serves as a testament to the evolving landscape of fiscal responsibility in Pakistan, where both the government and taxpayers are actively participating in building a robust and transparent economic framework.
