Daily The Business

FBR clarifies

LAHORE: Federal Board of Revenue (FBR) has clarified certain media
reports appearing in a section of the press claiming “advance taxes
give artificial boost to revenue collection”.

FBR Monday termed the news report as misconceived and misguiding as
the collection of Advance Tax depicts real time quarterly collection
and the regime of Advance Tax collection is available in all developed
countries’ tax systems. Since advance tax is paid on quarterly basis,
it saves the taxpayer from excessive burden at the end of a financial
year. Such a taxation also gives real-time tax collection estimates to
the government. Besides, it is in consonance with the universally
acclaimed taxing maxim of ‘Pay as You Earn’. Lastly, Advance Tax is
not collected on arbitrary grounds. It is, in fact, collected in the
light of clearly stipulated criterion laid down under Section 147 of
the Income Tax Ordinance 2001 and the credit is given to the taxpayer
at the time of filing of tax return.

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