Income Tax returns Filers in Pakistan hits highest level of history
ISLAMABAD - Income Tax returns Filers in Pakistan hits highest level of history.
The Federal Board of Revenue (FBR) has seen a 40 percent year on year growth after collecting 2,342,642 income tax returns as of January 31, 2020 for Tax Year 2019. Last year, the board had collected only 1,645,828 returns received for Tax Year 2018.
The total revenue collected for the month of January has been Rs 320 billion which is 17% higher than last year.
The figure is likely to increase due to book adjustments and late reporting by offline branches of NBP. The overall numbers are also showing a healthy growth of around 17%.
The current tax base is dependent on the growth of large scale manufacturing, imports and nonfood, non medicine, nonshelter, and high-end consumption inflation as well as on wage rate increases and nominal increase after depreciation corporate profits and not on nominal GDP.
Data from the past five years has revealed that that FBR collects almost 50 to 55% of its taxes at import stage.
The import compression has brought growth in this component to almost zero, which is also why the government is mulling a major shift in policy to ease imports.