ISLAMABAD: The number of income tax return filers has crossed 3 million mark with tax payments of Rs70 billion during tax year (2021) against tax payment of Rs 52 billion in tax year 2020, reflecting an increase of Rs 18 billion.

According to the latest data of the Federal Board of Revenue (FBR), the number of return filers was 2 million during the tax year (TY) 2017. However, this number crossed 3million mark in TY 2020. The return filing for TY 2021 is still in progress; hence, the number is increasing gradually and so far, by January 31, 2022 more than 3 million people have filed their income tax returns.

As a whole, during TY 2017 and TY 2021 nearly 50 percent growth has been recorded. Over the years, the number of income tax return filers has increased substantially, FBR said. The data further revealed that the corporate return filers jumped from 40,000 to more than 60,000 during last five tax years and during the same period payment with return improved from Rs.20.3 billion to Rs.38.7 billion.

Tax Year 2021: FBR receives record number of 2.163m tax returns so far

During the tax year 2021, the return filers within the category of individuals stood at 2,896,405 with tax payment of Rs 25,383 million. The payment of taxes along with the returns amounted to Rs 25 billion during tax year 2021 as compared to Rs 26 billion during tax year 2020, reflecting a decrease of nearly Rs 1 billion. Within the category of Association of Persons (AOPs), the income tax return filers stood at 79,260 along with tax payment of Rs 5,803 million.

The payment with return is an important component of income tax collection. Collection from this head has increased from Rs.Rs.30 billion in TY 2017 to Rs.70 billion in TY 2021, which is 133 percent higher. This is also reflected in the Tax Year-wise growth in terms of percentage and the growth patterns of number of filers and payments seems aligned with each other, the FBR added.

Copyright Business Recorder, 2022