Islamabad, Jan 29: The tax return filings for the fiscal year 2024-25 have seen 5.9 million submissions, with 43.3% of filers reporting no taxable income. This has raised concerns over the adequacy of tax contributions in relation to the country’s fiscal needs. A mere 3,651 individuals reported taxable income exceeding Rs. 100 million, while only 12 individuals declared wealth over Rs. 10 billion for the 2023-24 fiscal year.
A closer look at the data reveals a decline in the number of filers, dropping from 6.8 million in 2023 to 5.9 million this year. Individual filers account for the majority, totaling 5.8 million, with 104,269 Association of Persons (AOPs) and 87,900 companies.
However, a significant discrepancy remains between industrial electricity connections and tax returns filed, with only 87,000 companies out of 300,000 industrial connections submitting returns. 
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The income distribution paints a concerning picture as well. Over 1.3 million filers declared incomes between Rs. 1 million and Rs. 5 million, while only 97,326 reported between Rs. 5 million and Rs. 10 million. Only 49,359 individuals declared income between Rs. 10 million and Rs. 50 million, and just 4,370 reported earnings ranging from Rs. 50 million to Rs. 100 million.
Although the total declared income surpassed Rs. 10 trillion, the actual tax revenue collected remained significantly lower, amounting to just Rs. 2.9 trillion. This mismatch underscores the ongoing challenges in Pakistan’s tax system, which continues to face hurdles in broadening the tax base and ensuring equitable contributions from all income groups. Addressing these disparities is crucial for improving the nation’s fiscal health and meeting its financial goals.
