LAHORE: The Pakistan Tax Bar Association (PTBA) has advised the Federal Board of Revenue (FBR) to extend the deadline for filing income tax returns to December 31, 2019. This recommendation was made in a letter addressed to the FBR chairman on Friday, citing several challenges faced by taxpayers and consultants.
The current deadline for filing income tax returns for the tax year 2019 is December 16, 2019. The PTBA’s suggestion encompasses salaried individuals, business individuals, and Associations of Persons (AOPs), advocating for an extension to the end of the month to accommodate the various hurdles encountered in the filing process.
The PTBA highlighted that the late publication of draft and final return forms for individuals, salaried individuals, and AOPs has contributed significantly to the delays. Moreover, the association pointed out the critical financial and business situations prevailing across the country, as well as the uncertainty regarding declarations by retailers and wholesalers under the fixed tax regime. These factors have collectively impeded the ability of tax consultants to complete and file returns on behalf of their clients within the stipulated time frame.
Additionally, the PTBA noted a substantial shortfall in the number of returns filed for the tax year 2019 compared to the previous year. As of now, taxpayers have filed 1.8 million returns, whereas, for the tax year 2018, a total of 2,711,098 returns were filed electronically by this date. This indicates a shortfall of approximately 34 percent, or 911,098 returns, even after the deadline extension to December 16, 2019.
The PTBA’s recommendation aims to alleviate the pressure on taxpayers and consultants, ensuring compliance with tax regulations without undue hardship. By extending the deadline, the FBR would provide a reasonable timeframe for the completion and submission of accurate tax returns, ultimately supporting the government’s revenue collection efforts.
The FBR is yet to respond to this suggestion, but the extension, if granted, would be a significant relief for many taxpayers and consultants struggling to meet the current deadline amidst challenging circumstances. The PTBA continues to advocate for policies and measures that facilitate tax compliance and ease the administrative burden on taxpayers, thereby contributing to a more efficient and transparent tax system in Pakistan.
As the deadline approaches, taxpayers and consultants await the FBR’s decision on this crucial matter, hoping for a favorable response that will enable them to fulfill their tax obligations without further complications.