Recently, the Federal Board of Revenue (FBR) has been advised to give the rebate of 5% as an incentive to taxpayers in timely filing of annual income tax returns. As this incentive will significantly improve the number of tax filers and will provide a support to the documentation initiative of the government.
In Pakistan’s 2017/2018 budget proposals, the Overseas Investors’ Chamber of Commerce and Industry (OICCI) said that tax rebate at 5% of tax liability should be given to all persons for filing return of income with wealth statement within the due date, given in the Income Tax Ordinance, 2001 to encourage and promote return filing culture.
In addition, if any taxpayers failed to file the return but have already duly paid their tax liability, like the salaried employees, should be given a one-time waiver to file tax returns for prior years.
