Pakistan’s tax collector FBR has extended the deadline for filing income tax returns of the fiscal year ending June 30, 2020, a notification says the deadline has been extended for more than 2 months.
Individuals, associations of persons, and companies are required to file their income tax returns with the FBR by the end of September every year. However, the deadline has now been extended till December 8, the FBR informed adding that no further extension in the deadline would be given, the report said.
The Federal authority, however, didn’t specify the reason for this extension but there were reports that the national exchequer didn’t upload the required forms until the second week of September and the extension was inevitable. For the tax year 2018, the FBR extended the date multiple times and stretched it over a year beyond the first deadline of September 30. It published taxpayers’ directory up to the fiscal year 2018 earlier this month, showing a lag of at least one year.
According to provisional estimates, the government will collect Rs4.7 trillion in federal taxes in the latest fiscal year and have a budget deficit of Rs3.3 trillion or 8% of the GDP. High expenditure and low revenue have been a big challenge for the government, which ends up borrowing money to plug this gap. The country has one of the lowest tax-to-GDP ratios (approximately 15%) because of tax evasion. For the fiscal year 2018, the tax authority selected 12,553 cases for the audit of which more than 10,000 are related to income tax and 2,000 to sales tax.