- FBR still mulling over whether to extend tax returns filing deadline
- Penalties, stringent conditions likely if deadline extended
ISLAMABAD: Inland Revenue (Policy) Member Dr Hamid Ateeq Sarwar said even if the deadline for filing of tax returns is extended, it will be done so with stringent conditions.
Talking to Pakistan Today on Monday, Sarwar expressed disappointment in the rate of tax returns being filed and blamed the public perception that causes tax filers to be convinced that there will always be an extension in this deadline.
“There has not been a single instance in the past ten years where the date for filing tax returns has not been extended. But we want to kill this perception,” he said, adding that it is not mandatory that extension is given every time.
“So even if we decide to give an extension, this time it will come with penalties and stringent conditions.”
According to Dr Ateeq, the Federal Board of Revue (FBR) has been looking to beat the tax collection figures of the past year, yet as per the Pakistan Tax Bar Association (PTBA) reports, merely 265,000 tax returns had been filed until September 28.
Today (Monday, September 30) is the last date of filing income tax returns, after which the FBR will start raids and impose fines on those who failed to submit their tax returns. At the same time, there is a widespread expectation from the general public as well as the business community that the FBR will eventually extend this deadline.
On September 28, Federation of Pakistan Chamber of Commerce and Industry (FPCCI) President Daroo Khan Achakzai, on behalf of businessmen as well as tax professionals, had asked the government to extend this deadline. The following day, (PTBA) also wrote a letter to FBR Chairman Syed Shabbar Zaidi pointing out several problems in the filing of tax returns and requested an extension in the deadline.
The letter held FBR responsible for the delay in uploading of draft return 2019 and notification of tax returns filing. The unavailability of the excel format for income tax return form has also been mentioned as a hurdle for majority of businessmen being unable to file their returns on time.
In the previous tax year, FBR received 2.6 million tax returns and for this year they are eyeing a figure of three million. In terms of tax amounts, the previous year’s collection stood around Rs30 billion. Dr Ateeq said that a big portion of this tax collection comes in December as corporate filing takes place at that time. “In individual AOP collection, the previous year’s collected amount was Rs4 billion. The FBR is also looking to surpass that.”
Answering a question of whether it seems likely that these targets will indeed be achieved, the member IR said, “For the past 4-5 years, people have become accustomed that FBR will be giving an extension anyway. So even though we had previously decided against extending the deadline, we will hold a meeting at 9:00 pm today and decide on how to deal with this perception of people. But even if we extend this deadline, it will not be simple extension rather we want to send a strong message this time so people come back into the fold of paying taxes and doing so within the deadline.”
If FBR want people to file on time then they also should make the form available by 01 July of every years as minimum 90 days should be given to taxpayers to file after the availability of new form legally. FBR made the form available on 2 Sep and that too was not error free. How do they expect people to file on time if they themselves don’t make the form available on time.