Federal Board of Revenue primarily operates through its main collection arms in the shape of its field formations viz, the Regional Tax Offices (RIOs) and Large Taxpayer Units (LTUs) across the country.
In recent years, focused efforts have been made in improving the performance of LTUs. These units are responsible for performing all direct tax administration functions relating to corporate taxpayers such as collection, enforcement of tax arrears and audit etc. LTUs are self-contained tax administration offices under FBR acting as a single window operation points for all matters relating to central excise, income tax/corporate tax and sales tax. Currently there are three LTUs, functioning in Islamabad, Lahore and Karachi and over the years due to their consistent positive performance output, the collective number of taxpayers catered by them have increased.
Since Karachi is referred to as the financial capital of Pakistan, it accounts for most of Pakistan's revenue generation. It generates more than half of the total collections of the Federal Board of Revenue. Karachi produces about 30 percent of value added in large-scale manufacturing and roughly a total of 20% of the GDP of Pakistan.
In line with its status as a major port and the country's largest metropolis, it accounts for most of Pakistan's revenue generation. Revenue collected from Karachi is collectively done through Large Taxpayers Unit (LTU) and its Regional Tax Offices (RTOs) located in Karachi, Hyderabad, Sukkur and Quetta cover the two provinces of Sindh and Balochistan. Considering the magnitude of workload at LTU Karachi and to cater to an exclusive dealing of its growing corporate client base in Karachi, the Federal Board of Revenue (FBR) has established a second LTU in Karachi. This LTU-II in Karachi specifically aims at not only generating optimal revenue collection but to provide a corporate style atmosphere to its corporate clients.
This interfacing and integration will help to substantially reduce irritants faced by taxpayers, improve the working of tax administration and will serve to be a model for developing the approaches, attitudes and behaviour that were followed by other organs of the FBR. Integrity, transparency, accountability and understanding of the problems from taxpayer's point of view are the guiding principles of the workforce in LTU-II Karachi.
In LTU-II Karachi, entities will be able to file their all relevant returns and swift compliance on all avenues will be ensured. This unit will be equipped with modern facilities and trained manpower to assist the tax payers in all matters relating to direct and indirect tax, payments, filing of documents and returns, claim of rebates/ refunds, settlement of disputes etc.
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