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Final Day for Income Tax Return Submission: 3.385 Million Filed in 2024
Today is the deadline for filing income tax returns! Over 3.385 million individuals have already submitted their returns, but a significant number remain outside the tax net. Non-filers face strict penalties.
ND
by News Desk
2024-09-30
Final Day for Income Tax Return Submission: 3.385 Million Filed in 2024

Today marks the final day for the submission of income tax returns for the year 2024, with the Federal Board of Revenue (FBR) reporting that over 3.385 million individuals have already filed their returns. This represents a significant increase of 1.669 million compared to last year's 1.715 million filers. Despite this progress, a large portion of individuals with taxable incomes remains outside the tax net.

 

Pakistan has a population exceeding 240 million, but only 3.385 million have completed their tax returns. Notably, of the approximately 25 million individuals with taxable income, a staggering 89% have yet to file. This disparity underscores the challenges the FBR faces in expanding the tax base.

 

The FBR also indicated that around 67 million people are part of the employed workforce, while the remaining 169 million, including children, are classified as unemployed. Alarmingly, many of those who have filed their returns reported zero taxable income. Specifically, 1.24 million individuals declared no income, highlighting a considerable segment within the tax system that is not contributing to revenue collection.

 

As for tax collection, the government has amassed Rs55.49 billion alongside the returns submitted. However, 37% of individuals did not file any tax payment, and the prevalence of zero taxable income among 1.240 million filers raises questions about the overall effectiveness of the current tax system.

 

In an effort to encourage compliance, non-filers face strict penalties, including restrictions on purchasing property and vehicles, as well as limitations on international travel. They may also encounter blocked electricity and gas connections and face double withholding tax on various transactions.

 

Trade bodies have called for an extension of the deadline, arguing that more individuals may file their returns as the submission period draws to a close. In total, 6.2 million individuals filed their returns for the tax year 2023, indicating that there may still be potential for increased compliance as the deadline approaches.
Tagged:

Pakistan

FBR

TaxCompliance

TaxReturns

IncomeTax
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