As the number of taxpayer identification number (TIN) registered in the country increases, the number of tax return submissions does not increase accordingly, said a report of the National Board of Revenue (NBR).
The report was prepared by NBR, said Samsuddin Ahmed on the National Income Tax Day.
According to the report, the number of TIN-holders has increased by 286 percent in the last 7 years. At the same time, the number of return submissions increased by 137 percent. As a result, two-thirds of the returns have not been deposited.
Although the law makes it mandatory to submit returns with TIN regardless of whether there is income or not, returns are not being submitted as expected.
According to NBR sources, filing of return with TIN is mandatory for FY 2018-19. Since then the number of return submissions has been increasing, but this number is still not satisfactory.
NBR expects to collect 35 lakh returns this year. It is planned to increase this number to 50 lakh within the next two years.
According to the report, the number of registered taxpayers in 2015-16 fiscal year was 16.50 lakh. In contrast to this, the return deposited that year was about 11 lakhs. In the last fiscal year 2021-22, the number of TIN holders was around 64 lakh while 25.91 lakh has been deposited.
The number of TIN holders has increased by 47.22 lakh 22 in 7 years. Currently, the number of TIN-holders has crossed 80 lakhs. This rate of growth was 286 percent while the submission of returns increased by 10.93 lakh or 137 percent.
NBR sources said that various initiatives have been taken in the current budget to expand the tax-net. Out of this, submission of proof along with submission of return has been made mandatory in 40 sectors including those where taking TIN is mandatory. As a result, the number of return deposits is expected to be 35 lakh this time.
According to the report, 90 percent of the returns have been deposited in the individual tax payer sector while only 30,000 to 35,000 or about three percent companies submit returns.
Experts think that some plans should be taken for raising the number of taxpayers including increasing the scope of taxation and simplifying tax services, fully digitizing the tax department, reforming the tax law, increasing the capacity of the tax department and creating skilled human resources for the tax department.