The Eastern Region Lahore has registered a substantial growth of 27 percent in income tax revenue collection in the first five months of the current financial year.
The revenue collected by the Eastern Region during the period from July to November 2006, amounted to Rs 9.3 billion as against Rs 7.3 billion of the same period last year, showing an increase of Rs 2 billion or 27 percent, Haji Ahmed, Regional Commissioner of Income Tax (RCIT), told Business Recorder, here on Wednesday.
"Our collection target for the financial year 2006-07 is Rs 24 billion which is Rs 5 billion or 26 percent higher as compared to last years' Rs 19 billion, and I am hopeful that by the grace of Allah, we will achieve this enhanced target", said Haji Ahmed.
Explaining reasons for this phenomenal increase in revenue collection, he said it has been made possible because of levy of capital value tax (CVT) on property and due to universal self-assessment scheme, which remained very successful in convincing people for voluntarily compliance. Moreover, overall economic policies of the government also contributed to the collection due to steps taken by the government, economic activities have increased, which, in turn, has raised the revenue.
About issuance of refunds, the RCIT pointed out that up to November 2006, the department paid Rs 801 million under this head as against Rs 400 million released in the same period last year. One of the most salient features of the reformed environment is that the department has cleared all backlog of refunds, which has increased taxpayers confidence in the tax department.