Out of the income tax of Rs 710 billion, field formations collected only Rs 12.5 billion. Photo: File
Islam Abad: Income tax collection on demand from taxpayers’ own efforts has shrunk by 41% in the current financial year, according to data compiled by the Federal Board of Revenue.
In the current financial year, from July 1 to December 15, a total domestic income tax of Rs 710 billion has been collected. According to FBR data, Field Formations has received only Rs 12.5 billion from this collection through ‘Current Collection on Demand’. Thus, the share of FBR field formations in the total income tax collection at the national level is only 1.8%.
Sources told the Express Tribune that the revenue of Rs 700 billion was received in the form of advance income tax (tax paid with income tax returns and holding taxes). In the same period of last financial year, the volume of income tax collection on demand was Rs. 21.2 billion, which has come down to 41% so far in the current financial year.
This poor performance of the FBR’s field formations reinforces the IMF’s assessment that the current extraordinarily good tax collection cannot be sustained on a long-term basis, and that this increase in tax collection at the import level is tax revenue. Due to the increase.
Withholding tax is the largest source of income tax collection, according to FBR data. That is, the tax that is automatically deducted on various transactions including payment of salaries, contracts and telephone bills.
In the current financial year, the FBR has collected Rs. 480 billion in holding taxes, which is 13% more than the same period of the previous financial year. At the national level, holding tax accounts for 68% of total tax revenue.