Islamabad, Pakistan – The Federal Board of Revenue (FBR) is stepping up its efforts to collect advance tax installments from banks and corporate entities in a timely manner. The FBR aims to meet its quarterly revenue target of Rs2.652 trillion for the first quarter of the fiscal year 2024-25.
The FBR has directed its field formations to focus on the top 10 cases of advance tax payment in their respective jurisdictions. Banks are required to pay monthly advance tax, while corporate entities will pay the first installment for the quarter by September 15.
The FBR collected Rs357 billion in advance tax during the first quarter of the previous fiscal year. It is expected to exceed this figure, potentially reaching over Rs400 billion, in the current quarter. Business Recorder
The FBR has also instructed field formations to investigate negative trends in sales tax collection. The Large Taxpayers Offices (LTOs) are closely monitoring banking companies to ensure timely payment of advance tax installments.
Corporate entities are required to pay advance tax on a quarterly basis under Section 147 of the Income Tax Ordinance, 2001. However, there are concerns that the FBR may issue exaggerated tax demands to generate additional revenue.
The FBR is expected to issue orders for advance tax payment by September 15. In case of non-payment, bank accounts may be attached to recover the outstanding amount.
