ISLAMABAD: Today marks the last date for the submission of income tax returns for 2024, with over 3.385 million individuals having already filed their returns, according to the Federal Board of Revenue (FBR).
Despite the significant rise in tax filings compared to last year, a large portion of individuals with taxable incomes remains outside the tax net.
Sources reveal that out of Pakistan’s population of over 240 million, only 3.385 million individuals have filed income tax returns. This reflects an increase of 1.669 million compared to the same period last year, when 1.715 million filers were recorded. However, of the approximately 25 million people with taxable incomes, 89% have not filed their returns.
The FBR reported that a substantial portion of the employed population, around 67 million, is part of the workforce, while the remaining 169 million, including children, are unemployed. Out of the 25 million people with taxable income, 89% are outside the tax net, sources reveal.
Additionally, many filers declared zero taxable income. Out of the total, 1.24 million individuals reported zero income, indicating a large segment of the population within the system but not contributing directly to tax collection.
FBR statistics also show that the government has collected Rs55.49 billion in taxes alongside the returns. However, 37% of individuals did not file any tax payment along with their returns. The number of those who declared zero taxable income is 1.240 million. New tax filers have also been added to the system, with 772,997 individuals joining from July 2023 and 318,522 new entrants from July 2024 until now.
Non-filers face strict penalties, including being barred from purchasing property, vehicles, and travelling abroad. They may also experience blockage of electricity and gas connections as well as mobile phone SIMs, while facing double withholding tax on various transactions.
Trade bodies have demanded an extension of the deadline, citing the likelihood of an increase in returns before the close of submissions. As of last year, a total of 6.2 million individuals filed their returns for the tax year 2023.
