FBR extends income tax returns filing deadline to Oct 15

This requires a 17.4% increase over last year's receipts.

Unlike in the past, the IMF has made it binding to meet tax targets and the approval of its sixth loan tranche hinges on achieving the H1 target.Provinces have promised to give a little over Rs1 trillion in grants to the federal government for defence and water projects, subject to the condition that the FBR collects Rs15.263 trillion in revenues.

The government has also taken revenue and enforcement measures of over Rs1 trillion in the budget to enable the FBR reach the target.According to provisional statistics, the tax authority got over Rs685 billion in income tax, falling short of the two-month target by a wide margin of Rs74 billion.

The income tax collection was also Rs29 billion less than the last fiscal year, marking negative growth of 4%.For the second consecutive month, the sales tax collection remained higher than the target.

The FBR received Rs719 billion worth of sales tax, exceeding the target by Rs85 billion.

The sales tax collection was also 14%, or Rs86 billion, higher than last year.Of the total, Rs496 billion, or 69%, of sales tax was generated at the import stage.

In the budget, the government has changed the law in order to collect sales tax at market prices of goods, instead of factory-gate prices, for numerous items.

This has reduced chances of tax evasion but has broken the value-added chain.The collection of federal excise duty stood at Rs118 billion, which was almost equal to the target and Rs3 billion higher than the last year.

Customs duty collection hit Rs198 billion, which was slightly lower than the target and equal to the previous year's receipts.

FBR extends income tax returns filing deadline to Oct 15 Updated 7 minutes ago.