The Federal Board of Revenue (FBR) has directed the Large Taxpayer Units (LTUs), both of Karachi and Lahore, to make extra efforts for achieving the direct taxes target of Rs 128.5 billion during the second quarter (October-December) of 2008-09.
In this regard, the FBR Direct Taxes Wing has chalked out an effective strategy to improve income tax collection in the second quarter of 2008-09. The board has specifically directed both LTUs--of Karachi and Lahore--to improve their performance, keeping in view their unsatisfactory performance during the first quarter of 2008-09.
Sources told Business Recorder on Sunday that the target for the second quarter of current fiscal year had been set at Rs 128.5 billion. During last financial year, collection for the second quarter was Rs 87.3 billion. This clearly reflects that the income tax department would need additional collection of Rs 41.2 billion. This figure, coupled with the deficit of Rs 9 billion of the first quarter (July-September) of 2008-09, points towards additional collection of Rs 50.2 billion over and above the last year's collection of Rs 87.3 billion to achieve the target for the second quarter in 2008-09. For this purpose, all-out efforts would be required.
According to sources, the tax officials have directed the field formations to put all-out efforts to achieve the target for the second quarter and also make up the shortfall of the first quarter. The FBR has substantially increased the target of direct tax collection from Rs 499 billion to Rs 554 billion for 2008-09. This has made it all the more necessary to increase efforts to achieve the revised targets.
Sources said that the LTUs have to improve direct taxes collection in the second quarter of 2008-09. During the first quarter the LTUs were facing difficulties in meeting their direct taxes target. Therefore, FBR has issued instructions to them to put in place effective strategies to improve the collection position.