Desks set up to facilitate return filers

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ISLAMABAD: The Federal Board of Revenue (FBR) has asked field formations to establish help desks to receive manual requests for extension in filing tax returns to facilitate non-filers.

The direction came ahead of the last date with a clear decision that no further general extension in the date will be granted to file income tax returns after Dec 8.

On Monday, the FBR asked Chief Commissioners Large Taxpayers’ Offices (LTUs), Medium Taxpayers’ Office Corporate Tax Offices (MTOs), and Regional Tax Offices (RTOs) to establish help desk in their respective offices to receive manual applications until Dec 10.

Pakistan Tax Bar, major chambers of commerce & industry and trade bodies have approached the FBR requesting that either the last date for filing of returns be extended or the process of seeking extensions from the commissioner be rendered facilitative.

No further extension as deadline expires today

As per decision, every Inland Revenue field formation would establish a Help Desk to receive manual requests for extension; and one request for extension addressed to Chief Commissioner Inland Revenue concerned could cover multiple taxpayers. However, the application would entail details of taxpayers’ names; their CNIC/NTN, and identification of jurisdiction to the extent possible.

It has also been decided that the option for filing of online request for extension would also be available and can be availed to the maximum degree. The FBR asked the chief commissioners to ensure proper receipt of all requests, grant of extensions, and report the number of requests received, and the extensions granted by Dec 10.

The FBR has received nearly 18 per cent less income tax returns for the tax year 2020 compared to the preceding year. The FBR received 1.4 million returns until Dec 7 as against 1.7m returns filed in the tax year 2019. These include both salaried and non-salaried individuals, the association of persons and companies.

In the budget 2019-20, the government en­­hanced penalty rate to Rs40,000 from Rs20,000, where any person fails to ­furnish a return of income.

Under the World Bank-funded project, one of the targets set for Pakistan is to enhance the filing of income tax returns to 3.5m until 2023.

The bigger challenge for the FBR this year is to cross last year’s tax returns margin let alone record growth over the previous year returns.

Under the law, the filing of tax return is mandatory for all those people who possess house of more than 500 square metres and a car of over 1,000cc. It is also mandatory for all commercial and industrial consumers of gas and electricity to be on active taxpayers list.