ISLAMABAD: The Federal Board of Revenue (FBR) has collected Rs80.1 billion during 2020-21 from income tax demands raised against the taxpayers against Rs60.8 billion collected in the previous fiscal year, showing an increase of 31 percent.

The FBR has released a bi-annual report (2020-21) Wednesday on the collection from income tax demands from the registered taxpayers.

The FBR report stated that the CoD covered taxes levied for various defaults/taxes evaded and collection out of such tax demand. In this sense, it provides a true reflection of the departmental efforts to enhance revenue collection and ensure tax compliance in the country.

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Although its current share at 4.6 percent of the total direct taxes collection is on the lower side; however, it is promising to note that during fiscal year (2020-21), overall collection from this head stood at Rs80.1 billion against Rs60.8 billion collected in previous fiscal year, registering more than 31 percent growth.

Further details of collection under this head reveal that the recovery from arrear demand has shown a substantial growth of around 75 percent, which is reflective of the extraordinary departmental efforts to recover due taxes.

On the other hand, collection out of current demand also increased by a healthy 19.9 percent. While these are promising developments, it is still believed that a thorough desk audit by the field formations could contribute significantly in raising the revenue from this head, which will be instrumental ultimately in ushering in a fair tax culture on the principle of taxing everyone according to the capacity to pay, the FBR stated.

Copyright Business Recorder, 2021