Activities at the Federal Board of Revenue (FBR) are in full swing as the deadline of income tax filing is coming near.
Read also: How Salaried Employees Can File Income Tax
Federal Board of Revenue has partnered with banks and other financial institutions to increase awareness and importance of filing for income tax returns. Numerous meetings were held by the FBR in regards to discussing the bottlenecks individuals are facing in regards to filing tax returns. During the meetings, it was also discussed that organizations need to motivate the employees with taxable income to file their tax returns and “fulfill their national obligation.”
According to Ishaq Dar, Minister of Finance, only 29% of the National Tax Number (NTN) holders filed tax in 2016. These 29% people account for 1.1 million people out of a population of over 200 million.
The government of Pakistan has introduced several types of withholding and sales tax for filer and non-filers of income tax returns. The rate of which is higher for non-filers.
One of the many reasons why people who have just entered the tax filing bracket do not file tax returns is the absence of a user-friendly procedure that can make the whole process hassle-free. The process, at the moment, apparently, is so complex for the new filers that they require the help of tax consultants which also results in more expenses.