Deadline for filing returns will not be extended, Pakistan's FBR confirms

Pakistan's Federal Board of Revenue (FBR) has confirmed that the deadline for filing tax returns for fiscal year 2023-24 (FY24) will not be extended beyond September 30.

The FBR has historically provided extensions in previous years, but this year, a decision has been made to adhere strictly to the original deadline.

Around 1.92 million tax returns have been submitted so far, marking an increase of 250,000 from the previous year. Last year, 5.99 million returns were filed.

Taxpayers who are unable to meet the deadline can apply for individual extensions through their respective tax commissioners, but no general extension will be granted.

The FBR's internal assessment has revealed a tax shortfall of over PKR 220 billion for the first quarter (July-September) of FY24 against a target of PKR 2,652bn. In August alone, the authority faced a shortfall of PKR 98bn. It collected PKR 1,456bn in the first two months against a target of PKR 1,554bn.

This leaves the FBR with the challenging task of collecting PKR 1,196bn in September to meet the first quarter target agreed with the International Monetary Fund. The annual tax collection target for the FBR is set at PKR 12,970bn.

To address issues of incorrect or incomplete tax returns, the FBR has recommended imposing a fine of PKR 1 million. Additionally, the authority has decided to outsource audits of high-net-worth individuals and companies to improve compliance.

Previously, the FBR had ordered the disconnection of mobile phones for 500,000 non-filers, but this measure did not yield the desired results. The FBR continues to explore further measures to ensure compliance and increase revenue collection.