The analysis of income and corporate tax returns filed during 2004-05 showed an impressive growth in the voluntary compliance under Universal Self-Assessment Scheme (USAS). A CBR report prepared by Dr Ather Maqsood Ahmed, Member, Fiscal Research and Statistics, said that a total of 1,102,800 returns and statements have been received from companies, association of persons (AOPs), salaried and non-salaried individuals, importers, exporters and contractors up to October 15.
The number of returns/statements showed an aggregate growth of 19.3 percent as compared to the previous fiscal.
The voluntary tax compliance has recorded a sizeable growth of 197.4 percent over the previous fiscal, which partially reflects the success of the introduction of Universal Self-Assessment Scheme in income and corporate tax structure.
Even though the number of returns filed by all the categories of taxpayers has registered a double-digit growth, the amount of tax paid by the salaried individuals has declined by a small amount of Rs 18 million. The analysis showed that 96 percent of the income and corporate taxes have been paid with returns as compared to 92 percent of the last year.
Region-wise comparison showed that the improvement has been broad-based. The growth in the number of returns in the Northern Region was 14.8 percent; Eastern Region, 32.4 percent; Central Region, 18.9 percent; Southern Region, 17.8 percent; Corporate Region, 5.7 percent and LTU, Karachi showed a growth of 16.3 percent.
The growth in tax payment with returns has been substantial in LTU Karachi, ie, 903.8 percent followed by Northern Region, 211.4 percent; Corporate Region, 42.9 percent and Southern Region, 24.4 percent.
However, even though the Eastern and Central regions have reported a decline in tax receipts by 4 percent and 16 percent, respectively, the decline in terms of amount is only Rs 56.6 million, which is less than one percent of the amount received.
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