The National Board of Revenue (NBR) has noted a surge in the number of Tax Identification Number (TIN) holders in the country, but there is a disproportionate increase in return submissions, as stated by the authority.
According to the NBR, by the conclusion of the deadline for return submissions for the fiscal year 2023-24, only 8.45% of the total institutions, equivalent to 24,381 companies/institutions, submitted returns. This implies that over 92% of the companies have not fulfilled their tax return obligations.
Official records from the Registrar of Joint Stock Companies and Firms reveal that the total number of registered public and private limited companies as of December 2023 is 2.88 lakh. Out of these, 2.64 lakh companies have failed to submit their tax returns.
NBR regulations stipulate that filing income tax returns is mandatory for all registered companies, regardless of profit or loss. However, a significant number of companies have not complied with this requirement during the first six months (July-December) of the fiscal year 2023-24.
Tax Commissioner Iqbal Bahar highlighted that several companies, despite being registered, have not commenced business operations. Additionally, many companies either fail to submit returns or use fake addresses, resulting in substantial revenue loss for the government.
