ISLAMABAD: Federal Board of Revenue (FBR) Chairman Dr Muhammad Irshad has said that the ongoing campaign to broaden tax net through sending notices to non-filers has helped increase number of taxpayers by 24 per cent last year.
The FBR chairman has warned the non-taxpayers to file returns or pay penalties, adding, “Relaxation was given only to those taxpayers who were willing to file returns and requested for extension in deadline.”
Dr Irshad said that due to efforts of the tax departments, filings for the tax year 2016 so far has surpassed 900,000, which are 24 percent higher than the returns filed for the tax year 2015. He said that the enforcement drive helped the FBR increase the number of return filers in January.
The government imposed 0.6 percent withholding tax on banking transactions other than through cash from July 1, 2015, payable by non-filers.
However, after the business and trade community protest, the rate was cut to 0.3 percent from July 11, 2015, but it was increased to 0.4 percent from March 2016. The reduced rate facility was available till December 31, 2016. The FBR, however, extended this till March 31 this year.
Number of return filers for the tax year 2015 increased to 1.2 million, according to the latest active taxpayers list (ATL). Taxpayers, enlisted in the ATL 2016, would only be able to avail the reduced rate of withholding tax.
