Income tax filings rise 45% to 5.77 million

Income tax return filings in Pakistan increased 45% year-on-year to 5.77 million by September 30, with non-salaried taxpayers accounting for most of the growth, according to Federal Board of Revenue (FBR) data.
 
A total of 5.77 million returns were filed compared with 3.98 million a year earlier, representing an increase of around 1.79 million filings. The latest figure is nearly three times the 1.86 million returns recorded by the end of September 2022.
 
Returns from non-salaried individuals, including traders, professionals, shopkeepers and self-employed persons, jumped 60% to 3.81 million from 2.38 million last year. This accounted for around 1.43 million of the additional filings.
 
Salaried taxpayers filed 1.9 million returns, up 22%, while returns from associations of persons rose 33% to 53,756. Non-salaried taxpayers now account for roughly two-thirds of total filings.
 
Despite the sharp rise in filings, tax payments declined. Returns showing tax paid increased 38% to 3.35 million, while tax paid with returns fell 7% to Rs77.3 billion from Rs83.3 billion last year.
 
Tax paid by individuals rose 11% to Rs34.5 billion and payments by associations of persons increased 16% to Rs3.7 billion. Company filings, however, dropped to 7,953 from 11,206, while tax paid by companies declined to Rs39.1 billion from Rs49 billion.
 
FBR officials attributed the decline in company filings to delays as businesses awaited an extension of the filing deadline. The extended deadline is expected to lift company filings and related tax payments in the coming weeks.

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