ISLAMABAD: Pakistan has recorded a sharp increase in income tax return filings, with the number of returns submitted by September 30 rising 45% year-on-year to 5.77 million.
According to Federal Board of Revenue (FBR) data, 5,767,384 returns were filed by the September 30 deadline, compared with 3,980,692 during the same period last year, an increase of around 1.79 million returns.
However, the higher number of filers has not translated into higher tax payments. Tax paid along with returns declined 7% to Rs. 77.3 billion, compared with Rs. 83.3 billion a year earlier.
The increase in filings was driven largely by non-salaried individuals, including traders and professionals. Their returns jumped around 60% to 3.81 million, accounting for roughly four-fifths of the overall increase. Salaried-person returns also rose, reaching around 1.9 million.
Meanwhile, corporate filings declined significantly. Only 7,953 companies had filed returns by September 30, compared with 11,206 last year, while tax paid through corporate returns dropped from Rs. 49 billion to Rs. 39.1 billion. FBR officials said some companies may have delayed filing in anticipation of an extension.
The FBR has now extended the Tax Year 2026 return-filing deadline to October 15, following requests from trade bodies and tax bar associations.
The extension also comes as the FBR increases scrutiny of declarations. The tax authority is using third-party information, including banking, property and vehicle records, to identify potential discrepancies and improve compliance.
