LAHORE: Pakistan has recorded a substantial increase in income tax return filings during the current fiscal year, with more than 7.5 million returns submitted so far. However, tax collection has declined compared with the corresponding period last year, highlighting a gap between the growing number of filers and revenue generation.
According to official figures cited in media reports, a total of 7,556,387 income tax returns have been filed, generating Rs100.605 billion in tax revenue.
During the corresponding period last year, 5,942,175 returns were submitted. The latest figures represent an increase of 1,614,212 filings, indicating a significant expansion in the number of registered taxpayers.
Despite this growth, tax collection declined by Rs11.58 billion year-on-year, raising questions about the level of declared taxable income and the effectiveness of revenue collection.
Non-salaried individuals accounted for the largest share of filings, submitting 5,069,378 returns compared with 3,676,000 during the same period last year.
Returns filed by salaried individuals reached 2,372,814. According to the reported figures, the tax liability associated with this category stood at Rs9.5184 billion.
The corporate sector, meanwhile, recorded a decline in tax return submissions. The number of company returns fell from 18,051 in the corresponding period last year to 15,243 during the current fiscal year.
In contrast, associations of persons recorded an increase, with 98,952 returns submitted compared with 91,766 last year.
Separately, registration under the scheme for small shopkeepers reached 3,295. Of these, 2,811 registrations were completed through the online portal, while 484 were processed through the mobile application.
The latest figures highlight the challenges facing Pakistan’s tax administration. While the growing number of tax filers suggests progress in expanding the documented taxpayer base, the decline in revenue collection indicates that increasing registrations alone may not be sufficient to strengthen public finances.
Improving tax compliance, ensuring accurate income declarations and bringing under-taxed sectors into the formal tax system remain important for enhancing revenue generation. The effectiveness of these measures will be reflected not only in the number of returns submitted but also in sustainable growth in tax collection.
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