Karachi region tax collection up by 28 percent

The Southern Region of Income Tax, Karachi, collected Rs 21 billion as revenue in the nine months of the current fiscal year, showing a rise of 28 percent over corresponding period of last year.
According to data made available to Business Recorder on Monday, the Region's revenue collection exceeded the target in July-March even after payment of record refunds in this period.
Officials were optimistic that the Region was well poised to exceed the target of the year, which is evident from the collection figures of nine months, showing a significant growth over the collection figures of Rs 16.4 billion of the July-March 2004-05.
The region collected Rs 19.5 billion withholding tax in this, registering a growth of 28 percent over Rs 15.2 billion of last year. The collection on account of advance taxes was Rs 425 million, showing a rise of 17 percent against Rs 362 million of last year.
The region collected over 100 percent more in CVT head. Total CVT collection was Rs 1.29 billion, against Rs 584 million of last year. The payment of refunds was also up by around 69 percent, as the Region paid Rs 1.4 billion refunds against Rs 829 million of last year.
Regional Commissioner of Income Tax (RCIT) Southern Region Ibrar Ahmed attributed the rise in collection to growing economic activities. "The economy is growing, resulting in more income generation, ultimately, in revenue collection," he said.
However, he added that proper monitoring of withholding tax by tax officials also contributed to the overall higher collection figures along with broadening of tax base by bringing more potential taxpayers in the tax net.
"We have collected information from different sources and brought many more people in the tax net. We have also arrangement with the provincial government to share information for potential taxpayers through its Excise & Taxation Department", Ibrar Ahmed said.
On future prospects, the RCIT said that he was hopeful of not only achieving the target but even of exceeding it, in view of the growing economic activities.