Tax deadline

Published October 31, 2014
.—Dawn file photo
.—Dawn file photo

IT would not be a bad idea to extend the filing deadline for taxes by a few more weeks. The e-filing system may be a much-needed innovation, but let’s admit that we are still trying to make it work properly.

The Karachi Tax Bar Association has made a list of failings in the system and called for the deadline to be moved forward, while many people are struggling with its complexities.

Getting used to the system will take a little more time, and an extension would help the message that the Federal Board of Revenue has been sending out on the benefits of filing to reach more people.

The government is to be commended for taking steps to encourage filing, including the incentives in the tax code regarding withholding taxes as well as publication of the list of filers.

Last year, the deadline was extended till Dec 16, and it is hard to argue that it resulted in any lost revenue for the state.

Industry and salaried people are the backbone of our country’s revenue generation, and leaders from both sides of that divide have pleaded for a little more time.

The powerful Federation of Pakistan Chambers of Commerce and Industry has also asked for more time to familiarise itself with the system. Besides, tax forms in many places were not available till well into September so many people are getting their first look at a new system very close to the deadline.

Since many businesses are still tallying up their losses from the general slowdown in the economy, as well as the disruptive impact of the floods and protests, it would be a good idea to give them a little more time to do their calculations accurately instead of having to deal with errors through audit at a later stage.

It is important for everyone to make every effort to file their returns though, and extensions should not be seen as an excuse to evade this obligation.

Published in Dawn, October 31st, 2014

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