Over 88pc firms fail to submit returns

Staff Reporter :
Over 88 per cent corporate firms have not submitted their income tax returns in the outgoing fiscal year (2022-23), creating concern over it.

The experts said that the return submission is not growing in accordance with the increasing number of the corporate firms and the low performance in the income return submission by the firms is really harmful for the country.

According to a data of the National Board of Revenue (NBR), only 33,905 companies filed returns at the end of the outgoing fiscal year (2022-23), is less than 12 per cent (11.94) of the total number of registered companies and firms.

On the other hand, around 2,84,058 public and private companies and firms registered with the Registrar of Joint Stock Companies And Firms (RJSC) across the country. As per the rules, return submission is mandatory for the registered companies and firms.

Of them, nearly 40 per cent or 1,08,360 companies are doing business in the country without a taxpayer identification number, according to the NBR data.

NBR officials, however, said many firms have taken the registration but yet to be started business operation, some have closed their business and some are not showing interested to file their income tax returns to evade tax.

Return submission process should be easier and digitalized.

Currently, the corporate taxpayers have to submit 26 types of document to file tax return, which is very difficult and time-consuming, the experts said.

Dr Abdul Mazid, former chairman of NBR, said, “NBR officials should be worry over the low performance in corporate tax return submission and a research should be conducted on why the taxpayers are failing to file it on time.”

He also suggested simplifying the return filing process, implementing automation and follow-up to registered companies.

As per the NBR data, about 27,286 companies in FY 2017-18, 27,680 companies in FY 2018-19, about 25,250 companies in FY 2019-20, about 29,785 companies in FY 2020-21 and about 30,100 companies in FY 2021-22 submitted their tax returns.