Businessmen seek extension in tax return filing date

Official says thousands of small business owners will be unable to file their taxes by Thursday

KARACHI:

The business community has demanded extension in the last date of filing income tax returns and called for withdrawal of the surcharge applicable on late filers.

In a statement on Tuesday, Federation of Pakistan Chambers of Commerce and Industry President Mian Nasser Hyatt Maggo requested the Federal Board of Revenue to extend the deadline for filing of income tax returns by two months.

“This will facilitate the business community and support the government’s vision of broadening the tax base and enhancing revenue collection,” he said.

It is pertinent to mention that September 30, 2021 is the deadline set by the government to file tax returns.

Referring to the data of small and medium enterprises maintained by the chamber, he said that thousands of small business owners will be unable to file their taxes by Thursday.

“FBR has notified a daily surcharge of 0.1% on taxable income for delayed filing, which is not only harsh but also impractical as it translates into 3% per month and 36% per annum,” the official criticised. “The maximum surcharge by FBR should be no more than KIBOR plus 2%.”

FBR takes over appeals process

Terming the surcharge one-sided anti-business decision, he urged the revenue collection authority to hold a consultative session with the business, industrial and trade community of Pakistan. He promised full support from FPCCI in organising the talks.

Echoing his views, Union of Small and Medium Enterprises (UNISAME) President Zulfikar Thaver requested Finance Minister Shaukat Tarin to extend the last date of filing income tax returns for the year 2020- 2021 till October 31, 2021 and facilitate the badly affected masses.

He noted that FBR was well aware of the fact that many income tax practitioners had to shut down their businesses due to Covid-19 and many people are unable find tax consultants.

“Secondly, the portal is facing glitches due to high traffic and it is at a slow pace,” he said.

According to him, FBR gave a small window to file tax returns because the forms became accessible in July 2021.

The extension in the deadline will facilitate tax return filers, he said.

Published in The Express Tribune, September 29^th, 2021.

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