ISLAMABAD: The Federal Board of Revenue (FBR) on Monday ruled out any possibility of extending the September 30 deadline for filing tax returns for the financial year 2024.
In a statement issued today, the tax regulatory authority clarified that media reports about extension in the income tax returns filing date “are untrue”.
“All taxpayers are urged to file their income tax returns immediately to avoid penalties and legal action,” it added.
Traditionally, the FBR, in recent years has adopted the practice of extending the tax return submission deadline. Last year, the authority pushed the date for the filing of tax returns to October 31.
Earlier, sources claimed that the deadline for filing income tax returns for the year 2023-24 may be extended by 15 days for individuals, associations of persons, businessmen and companies.
In June, Prime Minister Shehbaz Sharif-led administration in its tax-heavy budget passed in June, set out an ambitious taxation plan to boost its prospects of securing a fresh bailout deal with the International Monetary Fund (IMF) — which it eventually did as the programme now awaits the approval of the Fund’s executive board.
Tax shortfall fears
Earlier this month, The News reported that the FBR has proposed drastic measures to avoid a possible shortfall in tax collection including freezing bank accounts and imposing a ban on the purchase of property and vehicles for tax evaders.
Sources said that an internal assessment of the FBR has shown a tax shortfall of over Rs220 billion for the first quarter (July-September) against the agreed target of Rs2,652 billion.
The authority faced a shortfall of Rs98 billion in August 2024. The FBR had collected Rs1,456 billion in the first two months (July and August) against the assigned target of Rs1,554 billion leaving the body with the challenging task of fetching Rs1,196 billion during the ongoing month to materialise the first quarter agreed target with the International Monetary Fund (IMF).
The annual tax collection target of FBR envisaged Rs12,970 billion, which was approved by parliament (Rs12,913 billion).
Speaking to the publication, official sources confirmed that the FBR identified two million nil filers out of the total of six million return filers.
Suggesting to categorise non-filers into three categories, the authority has recommended the government impose a fine of Rs1 million for incorrect/incomplete tax returns.
The FBR official further added that “nil filers” would have to face severe action including freezing of their bank accounts and a ban on the purchase of properties or vehicles with an immediate effect.
Whereas, those evading payment of tax amounts ranging from Rs0.5 million to Rs1 million will face disconnection of electricity and gas connections.
It is to be noted that previously, the tax collection body also ordered the disconnection of mobile phones of 0.5 million non-filers, but it could not achieve the desired results.
The FBR, in the third category, tabled the recommendation that if the tax dodgers were under filers up to the tune of Rs1 million or more, it would also propose some more measures against them.
Furthermore, the tax authority had decided to outsource audits of high-net-worth individuals (HNWs) and companies.
