Around 170,000 income tax returns filed in June

KARACHI: Authorities have received 170,000 income tax returns in June 2019, as filing spiked in the month ahead of July 3 deadline of an amnesty for the declaration of hidden assets, officials said.

The Federal Board of Revenue (FBR) had received a record total of 2.11 million income tax returns by June 30, 2019, apparently due to huge participation in the amnesty scheme. In June alone, the FBR had received 170,000 new income tax returns.

“Though the date for filing was also extended for general public (late tax filers), the numbers in June showed a massive participation in amnesty scheme,” an official said. FBR officials said they expect more income tax returns to be added in the scheme after three days extension in the scheme.

The amnesty, which runs until July 3, aims to provide the government with new taxpayers and billions of rupees in revenue to help cover a large fiscal deficit. Under the measures announced in the scheme, non-declared assets can be regularised on payment of a 4 percent levy, with property assets levied at 1.5 percent.

Pakistanis who declare assets overseas are allowed to pay bit higher rate of tax / penalty if they are not keen to bring them home. Successive governments have promised to rein in tax evasion and boost revenues, but have faced fierce resistance to change powerful tax dodgers.

However, facing government threats of an unprecedented crackdown on tax evaders, participation in the scheme has surged in late June. Analysts said the participation surge is definitely a relief for economic policymakers, some of whom fear a less than stellar amnesty would force the government to slash the already meager spending to contain a ballooning fiscal deficit.

“Those who have evaded taxes by hiding their local and foreign assets have about two more days to turn themselves into the program or gamble they will not be caught,” said an analyst. Sources said the FBR had also included names of declarants under the amnesty scheme 2018 and Asset Declaration Scheme – 2019 in the latest Active Taxpayers List.

“It would be the last ATL for the tax year 2018, if the date is not extended further,” a source said. The FBR issues ATL every year on March 1. It was regularly updating the ATL on weekly basis till the fiscal year 2017/18. Through the Finance Act, 2018 the late filers were denied as active taxpayers. Since the dates were frequently extended for the tax year 2018, the FBR is still updating the ATL.