The Federal Board of Revenue (FBR) has announced that it exceeded its tax collection target for September 2024 by Rs8 billion, collecting Rs1,106 billion against a target of Rs1,098 billion.

Despite this achievement, the FBR faced a significant setback during the first quarter of the fiscal year, falling short of the July-September target by Rs90 billion.

During the first quarter, the FBR collected Rs2,562 billion in taxes, missing the target of Rs2,652 billion. However, compared to the same period last year, there was an increase of Rs521 billion in tax revenue.

The FBR also reported issuing refunds worth Rs146.5 billion during the first quarter, including Rs14.8 billion in September alone.

In terms of specific tax categories, income tax collections for the first three months amounted to Rs1,273 billion, while sales tax collections reached over Rs992 billion. Additionally, the FBR collected Rs271 billion in federal excise duty and Rs292 billion in customs duty from July to September.

Also Read: FBR decides to extend income tax filing deadline by 14 days

For the month of September, income tax collections totalled Rs616.8 billion, sales tax collections reached Rs344.5 billion, federal excise duty amounted to Rs55.4 billion, and customs duty generated Rs104.5 billion in revenue.

While the FBR exceeded its target for September, the overall first-quarter performance highlights the ongoing challenges in meeting tax revenue goals.

Meanwhile, the FBR decided to extend the deadline for filing income tax returns by 14 days. Earlier, trade associations and tax bar associations had called for a one-month extension, with reports suggesting that a notification for the extension was expected after Prime Minister Shehbaz Sharif's approval.

The FBR urged all taxpayers to file their returns promptly to avoid penalties and legal consequences. As of now, more than 3.5 million individuals have submitted their income tax returns, marking a significant increase compared to the same period last year, with the number of filers doubling.

Also Read: Today's last date for income tax return filing; 1.240m declare zero taxable income

Moreover, sources reveal that out of Pakistan’s population of over 240 million, only 3.385 million individuals have filed income tax returns. This reflects an increase of 1.669 million compared to the same period last year, when 1.715 million filers were recorded. However, of the approximately 25 million people with taxable incomes, 89% have not filed their returns.

The FBR reported that a substantial portion of the employed population, around 67 million, is part of the workforce, while the remaining 169 million, including children, are unemployed. Out of the 25 million people with taxable income, 89% are outside the tax net, sources reveal.

Additionally, many filers declared zero taxable income. Out of the total, 1.24 million individuals reported zero income, indicating a large segment of the population within the system but not contributing directly to tax collection.