Pakistan is experiencing a transition in terms of its economic situation with the new government stepping in.
One of Pakistan's core challenges for economic sustainability is the country’s tax collections and tax to GDP ratio, which is one of the lowest in the world and subsequently encouraging the current economic crisis.
One of the top priorities for the new government is to substantially increase the number of tax filers, from current dismal number of approx 1.3 million to at least three times of the current situation.
It is for this reason that as per the government’s fiscal policies incorporated in the budget for current fiscal year, provisions have been made in the Income Tax Ordinance 2001 to ensure penalties and entail serious ramifications for individuals fail to file their returns.
Apart from these provisions, which prohibit non-filers from purchasing any property or motor vehicles, non-filers end up paying relatively higher amount of taxes, all the while exposing themselves to significant penalties on their way.
What is BeFiler.com?
BeFiler.com is Pakistan's first online tax portal for preparing tax returns.
The portal is an online tax return preparation system where anyone can sign up, and prepare income tax return within minutes, by answering few simple questions, and entering relevant details.
Here's a look at how BeFiler works:
Under Pakistan’s Tax law, every citizen having annual taxable income of Rs. 400,000 or more is required to file tax returns.
As part of the government’s efforts to bring more people inside the tax net, non-filers this year are said to be excluded from the Active Taxpayer List (ATL) till March 2020, which means non-filers will not be able to buy a new car or any property worth over Rs 5 million for the next two years.
Most salaried individuals, despite the fact that their tax is already deducted at source, do not file their tax returns due to the lack of knowledge on the subject, and high cost of engaging a tax consultant to assist them.
Keeping these factors in mind, two of Pakistan’s renowned financial consultants Syed Asad Ali Shah and Mr. Ashfaq Tola joined hands with Arittek Solutions, a technology company, with the aim to simplify the tax filing process for individuals; particularly salaried class, and encourage the practice of tax documentation in the country.
Befiler.com makes tax filing easy for people with little or no financial knowledge, without having to engage with expensive tax consultants. It also aims to enhance the number of tax filers in the country in an attempt to enhance the tax base. This initiative also intends to help reduce huge costs for citizens who bear a collective brunt of penalties in the country.
Here's a look at the salary tax calculator:
The portal has been developed in consultation with professional tax experts to ensure that it’s in line with all applicable tax laws.
One of the most important principle that was kept in mind while developing this system was to educate the individuals on their finances on how taxes are calculated on their income.
Tax consultants usually file tax returns on their own without any involvement of the filer. However, BeFiler.com follows a step-by-step process allowing users to prepare their tax returns with complete and accurate information, while learning about various tax credits available to them.
Sources of income covered under Befiler.com
Following sources of income are covered by the website:
Rent on property
Profit on bank deposit
Dividend/Capital gain on investments in shares or Mutual Funds, and
Capital gain on property.
Professional tax consultants review all applications filed and charge a nominal fee of Rs3000 to file returns.
This content is a paid advertisement by BeFiler.com and is not associated with or necessarily reflective of the views of Dawn.com and its editorial staff.