The Federal Board of Revenue (FBR) collected Rs133.36 billion in taxes from salaried individuals during the last fiscal year of 2017/18, up 20 percent year-over-year as per official data.
FBR’s tax collection, under this head, amounted to Rs111.17 billion in FY2017. “This (growth) shows expansion in economic activities and availability of more jobs,” an FBR’s official said. The official further stated that this increase in revenue was due to FBR’s efforts. It was examined through the withholding statements that individuals with taxable-income were out of the tax-net. It was further noted that the increase in salary by the government also resulted in a boosted tax revenue collection. Previously a 10% increase in ad-hoc relief for civil and armed forces employees was announced in the year 2017/18.
According to officials, the income tax returns will be significantly larger for the tax year 2017/18. This is because of the growth in tax collection from the salary income. At present, about 0.75 million salaried individuals are on the active taxpayers’ list.
Tax officials said the income tax law defines salary income as amount received by an employee from any employment in shape of pay, wages or other remuneration, including leave pay, overtime payment, bonus, commission and gratuity.