ISLAMABAD: Pakistan recorded nearly 45 percent more income tax returns by Sept. 30 than a year earlier, driven largely by non-salaried individuals, but payments accompanying filings fell seven percent, the tax authority said on Thursday.

The figures highlight the challenge facing Pakistan’s revenue reforms: bringing more people into the system must translate into accurate declarations and sustained tax collection. Filing a return does not necessarily mean a person owes tax or makes an additional payment.

Broadening the tax base is central to Pakistan’s $7 billion International Monetary Fund program. The lender has identified low tax collection relative to the size of the economy and called for stronger compliance and greater contributions from undertaxed sectors, including retail, property and agriculture.

“Bringing people into the net is the easier half of the task. The harder half is ensuring that what they declare is accurate,” the Federal Board of Revenue (FBR) said in a statement.

The authority recorded 5.77 million returns by the night of Sept. 30, compared with 3.98 million on the same date last year, an increase of about 1.79 million.

Non-salaried individuals, a category covering traders, shopkeepers, professionals and the self-employed, accounted for four-fifths of that increase. Their returns rose 60 percent to 3.81 million, making up roughly two-thirds of all filings.

Salaried individuals’ returns increased 22 percent to about 1.9 million. Their income tax is generally deducted by employers, making collection more straightforward than from businesses and self-employed workers.

The FBR said returns declaring income above the taxable threshold increased 37 percent to nearly 2.5 million. Returns showing tax paid rose 38 percent to 3.35 million, with particularly strong growth among non-salaried individuals.

However, total tax paid with returns fell to Rs77.3 billion ($278 million), from Rs83.3 billion ($300 million) a year earlier, because lower company payments outweighed increases from individuals and partnerships.

These amounts represent payments accompanying the returns, rather than total income tax receipts or overall government tax collection. Taxes already deducted or collected in advance are separate from additional payments made when filing.

Company returns fell to 7,953 from 11,206. The FBR attributed the decline to companies delaying submissions in anticipation of a deadline extension and said further filings and payments were expected. That explanation remains provisional until more returns are received.

On Wednesday, the authority extended the filing deadline from Sept. 30 to Oct. 15 following requests from business groups and tax practitioners’ associations. The extension applies to taxpayers whose Tax Year 2026 returns were due on Sept. 30.

The FBR attributed increased participation to matching tax declarations with banking, property, vehicle and withholding records, simpler filing procedures and restrictions on major economic transactions for non-filers.

It said risk-based audits would be the next step in testing the accuracy of declarations. The figures demonstrate broader participation, but do not yet establish whether the increase will deliver sustained additional revenue.