The Federal Board of Revenue (FBR) has extended the deadline for filing income tax returns for the tax year 2024 to October 14, providing additional time for those who missed the original September 30 deadline.Â
This decision comes in response to appeals from trade bodies, tax bars, and the general public, despite earlier denials from Federal Board of Revenue (FBR) officials regarding an extension.
The extension gives taxpayers an extra two weeks to fulfill their obligations, a move the government has regularly made in past years, typically pushing the deadline into October and occasionally beyond.
Traders had previously requested an extension until October 31, citing technical difficulties with the Iris portal. As of the original September 30 deadline, the FBR reported receiving 3.66 million income tax returns, an increase of 87.9% compared to the 1.95 million returns filed by the same period last year. In total, 6.24 million returns were submitted in the previous tax year, 2023.
Preliminary data shows that 340,473 new filers joined the tax rolls between July 1 and September 30, 2024, further expanding the tax base.
However, a notable concern is the rise in “nil-filers,” individuals who submit returns to benefit from lower tax rates without paying any taxes. From July to September 2024, 1.33 million nil returns were filed, accounting for 36.45% of the total returns submitted. The previous year saw 3.37 million nil returns, making up more than half of all returns filed.
In response to this growing trend, the government has decided to abolish both the non-filer and notional-filer categories. Notional filers are individuals who file returns solely to secure lower tax rates without contributing actual tax payments.
To curb such practices, the government has proposed stricter measures, including restrictions on non-filers from acquiring cars, property, or financial instruments and opening regular bank accounts. These measures aim to increase compliance and broaden the tax base.
