KARACHI: A large number of public and private sector employees do not file their tax returns under the misconception that since income tax has been deducted at source there was no need for filing.

This observation was shared by a team of the Federal Board of Revenue (FBR) on Thursday.

The two-member team, led by FBR member Facilitation and Tax Education (FATE) Nausheen Javaid Amjad, is conducting a tax awareness drive in Karachi which aims to motivate salaried individuals to file their tax returns before the due date of October 31.

The FBR team stressed that the law demands that any individual drawing salary above Rs400,000 per annum has to mandatorily file income tax returns.

In a meeting with Ms Amjad held at Large Taxpayer’ Unit on Thursday, Pakistan Tax Bar Association President Abdul Qadir Memon extended full support to FBR in its initiative for broadening of tax base. The FBR member observed that salaried class did not file tax returns even though their tax was being deducted at source by employers.

Similarly, under Section 114, read with part one of the first schedule of Income Tax Ordinance 2001, any business having income in the range of Rs300,000-400,000 will mandatorily file tax return.

Ms Amjad stressed upon the need for providing services at the door step to potential taxpayers.

“We understand that sending notices to non-filers is a traditional mode of enforcement but there is now a renewed focus and greater desire in FBR on creating awareness among the public and offering them maximum facilitation and help in shouldering their tax-related responsibilities,” said the Member FBR.

She said the filing of returns could result in significant advantages to the employees and save them from paying higher differential rate of taxes introduced for the filers and non-filers. She lauded the efforts of PTBA in promotion of tax culture.

On the occasion, Mr Memon said the PTBA has plans to setup PTBA Academy of Taxation and make efforts for promulgation of law regarding ‘Taxpayers Bill of Rights’.

It was agreed that initially 50 companies in Karachi would be approached for facilitating interaction between tax officials and their employees for creating awareness about filing of tax returns.

The FBR team also held separate meetings with Acting President and CFO of Habib Bank, Raymond Kotwal; President Meezan Bank Irfan Siddiqui and Acting Managing Director SSGC Muhammad Amin Rajput.

Published in Dawn, October 13th, 2017