ISLAMABAD: Tax collection went up by 20 per-cent during July-November period of financial year 2017-18 touching Rs1.302 trillion, the Federal Board of Revenue revealed on Thursday.
During November, FBR collected Rs270 billion, rising 24 per-cent compared to same period last year (SPLY) but still recording a deficit of Rs24 billion, reported Express Tribune.
Tax refunds of Rs13 billion were issued during November and provisional net revenue collection during July-October period of FY 2017-18 reached Rs1.302 trillion, said an FBR spokesman.
Overall annual increase of 19.2 per-cent is being targeted for revenue collection during financial year 2017-18 and exact target hasn’t been revealed by FBR.
As per FBR data, around 991,187 associations of persons, companies and individuals filed their income tax returns by November end. The Active Taxpayers’ list for tax year 2016 discloses 1.33 million active tax payers, meaning over 342,000 are still avoiding the tax net.
Cumulatively, a total of 991.187 returns have been received by the tax watchdog compared to 746,022 up-to November 30, 2016. This corresponds to a 33 per-cent increase in number of returns received compared to SPLY.
FBR spokesman said the Active Taxpayers list will see a major change, once the directory for 2017 replaces the 2016 one.
The Broadening of Tax Base (BTB) section of FBR sent 40,000 tax notices during July-October period of financial year 2017-18 and only 21,000 then filed their income tax returns by paying a meagre amount of Rs46 million in taxes.
Such meagre contributions have been blamed on current income tax self-assessment regime which permits individuals to pay as much they like until their cases are picked for audit by FBR.
To raise tax collection, the incumbent government has set different tiers of withholding and sales tax rates for non-filers and filers of income tax returns. Withholding taxes amount to around seventy-one and cover nearly almost every possible expenditure and transaction.
FBR is using such taxes and other indirect taxes to boost its coffers, which are said to contribute over 92.4 per-cent of FBR’s total collection.