Monday, October 14, 2024 02:12 PM
FBR intensifies efforts to collect advance tax instalments, targeting Rs2.652 trillion revenue for fiscal year 2024-25.
In recent developments, the Federal Board of Revenue (FBR) has ramped up its efforts to ensure the timely collection of advance tax instalments from both banks and the corporate sector. This initiative is crucial as the FBR aims to meet its ambitious quarterly revenue target of Rs2.652 trillion for the fiscal year 2024-25, covering the period from July to September.
To facilitate this process, the FBR has directed its field formations to focus on the top ten cases of advance tax payments within their jurisdictions. This means that tax officials will be closely monitoring specific companies and banks to ensure they fulfill their tax obligations on time. Banks are required to pay advance tax on a monthly basis, while corporate entities must submit their first instalment of advance tax for the first quarter by September 15.
Last year, during the first quarter of the fiscal year 2023-24, the FBR successfully collected Rs357 billion in advance tax. However, this year, sources indicate that the FBR is optimistic about surpassing this figure, with expectations of collecting over Rs400 billion in advance tax during the same period.
Moreover, the FBR is also addressing concerns regarding negative trends in sales tax. The Large Taxpayers Offices (LTOs) are actively engaging with banking companies to ensure that advance tax instalments are paid promptly in September 2024, thereby helping to meet the assigned revenue collection targets.
It is important to note that under Section 147 of the Income Tax Ordinance, 2001, corporate entities are mandated to pay advance tax on a quarterly basis. However, there are growing concerns that some companies may face exaggerated tax demands, which could lead to inflated amounts being collected from the corporate sector. This practice, if it occurs, could generate additional revenue for the FBR but may also create financial strain on businesses.
As the deadline of September 15 approaches, the FBR is expected to issue orders for advance tax payments, and there are indications that exaggerated tax demands may be raised. In cases of non-compliance, the FBR has the authority to attach bank accounts and recover the owed advance tax, as highlighted by tax experts.
The FBR's intensified efforts to collect advance tax instalments reflect its commitment to achieving revenue targets essential for the country's economic stability. While the measures taken are aimed at enhancing tax compliance, it is crucial for the FBR to balance its revenue collection strategies with fair practices that do not unduly burden the corporate sector. As taxpayers, it is vital to stay informed and prepared for these obligations to ensure smooth compliance and avoid any potential penalties.