Officials said on Saturday that income tax collection on profit earned from bank deposits increased 15% in the first eight months of this fiscal year because it remained a popular low-risk investment choice during the virus restrictions. During the FY2020/2021 fiscal year (July–February), the Regional Tax Office (RTO) – I Karachi raised Rs51.28 billion. In comparison, Rs44.6 billion was spent in the same months last year.
This increase may be due to a rise in coronavirus cases. According to RTO-I Karachi sources, the Covid-19 was discovered in February of last year, prompting a lockdown.
According to officials, all economic and manufacturing operations came to a halt during the lockout, limiting investment opportunities. They added that in that case, banks had earned large deposits.
According to the sources, revenue collection has decreased on a monthly basis since the government lifted the lockdown in June 2020, allowing commercial and industrial activities to resume. They predicted that income tax collections will increase in the coming months, owing to record-high bank deposits and a likely increase in the infection ratio in the third wave of the pandemic.
