RTO-I Karachi posts 60pc growth in Sept tax collection

KARACHI: The Regional Tax Office (RTO)-I Karachi has posted 60 percent growth in revenue collection to Rs11.05 billion during the month of September, despite transfer of revenue yielding cases to other tax offices.

The RTO had collected Rs6.9 billion during the corresponding period last year.

Sources in the RTO-I said due to change in the jurisdiction over taxpayers during the last couple of months, around Rs1.7 billion was not added to the collection of the RTO-I Karachi.

During the past couple of weeks, the Federal Board of Revenue (FBR) announced major changes in the jurisdiction of taxpayers’ cases, besides renaming the tax offices.

The existing RTO-I Karachi was previously called RTO-II Karachi.

The sources said after lower growth in tax collection during the first two months of the current fiscal year due to heavy rains and coronavirus, the RTO-I Karachi had taken all measures to improve the revenue collection.

Chief Commissioner Inland Revenue RTO-I Karachi Nazir Ahmed Shoroo had issued instructions to the tax officials to ensure recovery of due taxes.

The sources also said the tax office had also initiated action against non-compliant taxpayers, especially those who availed the Amnesty Scheme 2019, but failed to make tax payments.

Besides, the tax office also initiated action against big retailers who failed to comply to install Point of Sale (POS), they added.

A huge amount of revenue was not realised, as the Sindh Excise Department had not resumed collection of withholding tax on registration / transfer of motor vehicles, the sources said.

The provincial excise and taxation department has stopped collection of withholding tax on motor vehicles since July 1, 2020. The federal and the provincial governments had agreed on various issues and the provincial government had shown affirmation on the collection, which was yet to resume.

The sources said the revenue collection of over Rs1 billion was not materialised under this head.