ISLAMABAD: The Federal Board of Revenue (FBR) has intensified efforts to timely collect due “advance tax” instalments from banks as well as corporate sector to meet quarterly (July-September) revenue target of Rs2.652 trillion for 2024-25.
Sources informed that the FBR has issued directions to its field formations to work on the top 10 cases of advance tax payment in their respective jurisdictions.
The banks are paying monthly advance tax and corporate entities will pay first instalment of advance tax for the first quarter of 2024-25 by September 15.
The FBR had collected Rs357 billion on the account of advance tax during the first quarter of last fiscal year 2023-24.
Sources said the FBR is likely to collect more than Rs400 billion on account of advance tax during the first quarter of the current fiscal year. The FBR has also asked field formations to look into the issue of negative trends in sales tax.
The Large Taxpayers Offices (LTOs) are pursuing banking companies for timely payment of advance tax instalment in September 2024 to meet the assigned revenue collection targets for first quarter of 2024-25.
The corporate sector would also pay advance tax first payment by September 15. Under Section 147 of the Income Tax Ordinance, 2001, the corporate entities have to pay advance tax on a quarterly basis.
However, there are reports that exaggerated tax demands may be raised against companies to collect inflated amount of advance tax from corporate sector to generate additional revenue.
Before September 15, the orders would be issued for payment of advance tax and exaggerated tax demands would be raised. In case of non-payment, bank accounts would be attached and advance tax payment would be recovered, a tax expert added.
Copyright Business Recorder, 2024
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