First quarter of 2013-14: RTO Islamabad shows shortfall of 81.84 percent in collection

Regional Tax Office (RTO) Islamabad has shown a major shortfall of 81.84 percent in revenue collection during first quarter (July-September) 2013-14, reflecting poor performance of tax authorities in federal capital.
Sources told Business Recorder here on Sunday that the RTO Islamabad has shown below expectation performance during the first quarter of 2013-14 as it has collected Rs 8,032.512 million during July-September 2013-14 as compared to assigned target of Rs 44,239 million, reflecting 18.16 percent achievement of the assigned target. This means that the RTO Islamabad has suffered shortfall of 81.84 percent in revenue collection during first quarter of 2013-14. Chief Commissioner RTO Islamabad has informed the FBR that refer to the Chairman's Review of overall performance of RTO, Islamabad in pursuance of FBR and subsequent short discussion held with Chief IR Operations in FBR.
To put the record straight, the performance of RTO, Islamabad for 1st quarter, 2013-14 may kindly be pursued viz-a-viz the performance of RTO, Islamabad for the 1st quarter 2012-13.
According to the Chief Commissioner RTO Islamabad, there is an increase of 33 percent in first quarter 2013-14 when compared with the previous year's quarter collection in the same period. Regarding the first quarter the budget fixed by FBR for Sales Tax was Rs 2,090 million compared to last years budget at Rs 290 million likewise budget fixed for federal excise duty (FED) was Rs 733 million compared to last years fixation at Rs 79 million. The same shows an increase of 621% & 828% for Sales Tax & FED accordingly when compared with previous fiscal. The issue of fixation of first quarters budget for Sales Tax was discussed with tax authorities and Board was informed that during the fiscal (2011-12) a collection of Rs 1,461 million in sales tax was received from FBR, vide letter deposited by Strategic Plan Division (NESCOM) which was reported by RTO, Islamabad in December, 2012. Regarding FED a collection of Rs 400 million received from PTA communicated by Board's letter during the month of the September, 2012 was reported in final figure of June, 2013. The FBR has accordingly worked out the RTO Islamabad's budget of FED & Sales Tax on the figures taken by them in their collection for the month of September vide the letter quoted above which is not fair as the budget for sales tax and FED in RTO Islamabad case should have been based on targets achieved in the first quarter of the last year by RTO Islamabad ie Rs 509 million sales tax and Rs 128 million FED.
Considering the above facts, there is a net increase of 33% over the last year. It will not be out of context to mention that RTO-wise collection nationwide, RTO, Islamabad stands at number two next to RTO-III, Karachi. In view of above if desired a suitable date may be fixed for RTO Islamabad to give a presentation to the Chairman FBR, Chief Commissioner's letter added.