The Federal Board of Revenue (FBR) has released its latest report on filing income tax returns and payment of sales tax by retailers in Pakistan. According to the report, only a small fraction of retailers filed income tax returns during the fiscal year (FY) 2021-22.
FBR Member Inland Revenue (Policy), Afaq Ahmed Qureshi, revealed the findings to the sub-committee of the National Assembly Standing Committee on Finance at the FBR Headquarters. The report showed that 2.3 million retailers deposited PKR 6 billion in sales tax under the fixed sales tax regime. However, only 0.133 million retailers filed income tax returns.
The FBR estimated that income tax returns from these retailers should generate around PKR 42 billion in revenue. The FBR member Inland Revenue also announced that a new income tax return for retailers will be rolled out during the current fiscal year.
Retailers’ low rate of income tax return filings highlights the need for greater tax compliance in Pakistan. The FBR has been taking measures to improve the tax system, including introducing new income tax returns and cracking down on tax evasion.
The latest report underscores the need for more concerted efforts to increase tax compliance and boost revenue collection in the country.
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