Number of active taxpayers falls 30%
Nearly 2.2m return filers were only one-third of those with valid National Tax Numbers
ATL 2021 has replaced ATL 2020 that carried names of 3.12 million individuals and companies. A comparison of both lists showed that over 932,000 names were missing from the new list.. PHOTO: FILE
ISLAMABAD:
In an alarming development, the number of active taxpayers has declined by 30% or 935,000 to just under 2.2 million, showed the new Active Taxpayers List that the Federal Board of Revenue (FBR) released on Monday.
The 2.2 million tax return filers were just one-third of those who have valid National Tax Numbers (NTNs) and are doing business in Pakistan but did not submit their tax returns, indicating the FBR’s failure to enforce laws.
Dream of viable economy remains ever elusive
Halfway into its term, PTI’s inability to bring necessary course correction overshadows minor gains in 2020
Contraction in imports indicated that economy was not growing at a healthy rate, which affirmed apprehension expressed by Ministry of Finance. PHOTO: REUTERS
ISLAMABAD:
Between its inability to introduce effective policies and the worldwide outbreak of the novel coronavirus, Pakistan Tehreek-e-Insaf’s promise to put the country on the road to economic viability and social equity remained a distant dream in 2020.
The end of the year marks the completion of nearly half the term of Prime Minister Imran Khan’s first national government, but his grand ambition for Pakistan continues to be elusive.
Should Maulana Tariq Jameel head the FBR?
Tax expert Haq says honesty can’t cut it when it comes to collecting taxes
Maulana Tariq Jameel. Photo: Online
ISLAMABAD:
Midway through the Pakistan Tehreek-e-Insaf (PTI) government’s tenure, it seems safe to say that “honest leadership” is not enough to collect taxes and increase tax base in Pakistan, top tax expert of the country Dr Ikramul Haq said in the Express News programme, The Review.
The renowned tax expert noted that enforcement of laws and use of technology were keys to achieving tax collection targets for the Federal Board of Revenue (FBR). “If tax collection can be increased through honesty alone, we should request Maulana Tariq Jameel to head the FBR,” Haq quipped. The comment came in the context of Prime Minister Imran Khan’s strong belief during his election campaign before the 2018 elections that an “honest leadership” could convince people to pay taxes and become a tax-compliant nation.
Non-residents exposed to taxes
Prior to the Finance Act 2019, an individual was treated as “resident individual” for a tax year if the person was present in Pakistan for a period of 183 days or more in a tax year. PHOTO: FILE
ISLAMABAD:
Scores of non-resident persons, who got stuck in Pakistan due to suspension of air travel in the aftermath of Covid-19, have accidentally become resident Pakistanis for tax purposes, exposing them to taxes on their world income.
Under the Income Tax Ordinance 2001, a person will be treated as a resident Pakistani, if he stays in Pakistan for 120 days or more in a tax year.