Karachi, October 27, 2023 – The Government of Pakistan has officially set the last date for filing the annual income tax return for the tax year 2023.
Taxpayers across the country have been advised to fulfill their national duty of declaring their income and assets by the approaching deadline, which is October 31, 2023. This date represents a one-month extension from the initial deadline of September 30, 2023.
With just four days remaining until the deadline, taxpayers are racing to file their income tax returns to avoid potential penalties and default surcharges. Failing to meet this extended deadline will result in financial consequences for individuals and companies alike.
One of the most significant repercussions for those who fail to file their returns on time is exclusion from the Active Taxpayers List (ATL). In Pakistan, being listed in the ATL is crucial for taxpayers, as it grants access to a lower tax rate when conducting various financial transactions. This serves as a strong incentive for individuals and businesses to ensure they are on the ATL by filing their income tax returns promptly.
However, despite the urgency of the situation, tax practitioners and filers have expressed dissatisfaction with the performance of the Federal Board of Revenue (FBR). The online return filing portal, which is pivotal for the tax filing process, has been plagued by technical errors and issues that have yet to be resolved satisfactorily.
The Karachi Tax Bar Association (KTBA) recently held a meeting with FBR members to address the persistent problems with the online portal. Despite assurances from the FBR that these issues would be rectified, members of the bar association remain unsatisfied with the functionality of the portal. Tax practitioners and filers have voiced their concerns about the portal’s continued challenges, which have made the process of filing returns more cumbersome and frustrating.
Filing income tax returns is a crucial aspect of a responsible citizen’s duty in any country, as it supports the government in collecting revenue for essential public services and development projects. By declaring their income and assets, individuals and companies contribute to the welfare of their fellow citizens and the growth of the nation. Failure to do so not only carries financial penalties but also undermines the integrity of the tax collection system, potentially leading to a shortfall in government funds.
The FBR, as the agency responsible for collecting and managing tax revenue in Pakistan, plays a pivotal role in facilitating the tax filing process. While technological advancements have streamlined many aspects of tax compliance, technical glitches and issues with the online portal have disrupted this vital process.
The issues faced by tax practitioners and filers have raised concerns about the efficiency and effectiveness of the FBR’s operations. The government and FBR need to address these concerns promptly to ensure a smoother and more user-friendly experience for taxpayers. This will not only improve compliance but also enhance the overall tax collection process.
With the deadline fast approaching, individuals and businesses are urged to make their income tax returns as soon as possible to avoid penalties and to secure their place on the Active Taxpayers List. The government’s role in ensuring a hassle-free filing process and resolving technical issues with the online portal will be crucial in achieving this goal.
In conclusion, Pakistan’s tax year 2023 return filing deadline is imminent, and the government has extended the due date to October 31, 2023. It is imperative for taxpayers to fulfill their obligations promptly to avoid penalties and exclusion from the Active Taxpayers List. While the government and FBR have made efforts to address technical issues with the online portal, there is still room for improvement in providing a more seamless and user-friendly tax filing experience.
