Section 147 of the Income Tax Ordinance continues to draw criticism for requiring non-salaried individuals earning as little as Rs83,334 per month (Rs1 million annually) to pay quarterly advance income tax based on their previous return. According to taxpayers, this FBR requirement imposes an unreasonable burden on vulnerable groups, including senior citizens, widows, and those relying on National Savings instruments or rental income.
For many, the quarterly tax cycle means repeated trips to consultants, added compliance costs, and financial pressure that outweighs their modest earnings.
Stakeholders argue that the annual income threshold triggering quarterly payments needs urgent revision. They propose increasing the limit from Rs1 million to Rs2.5 million per annum — a change that would apply only to individuals and therefore have minimal impact on the FBR’s cash flow.
They believe such rationalisation would significantly ease the compliance burden on low-income non-salaried taxpayers while maintaining revenue stability.
