Federal Board of Revenue (FBR) Member Inland Revenue Khawar Khurshid Butt on Tuesday showed full determination for achieving the revenue collection target of Rs 1588 billion for 2010-11 taking into account daily monitoring and enforcement in the field formations.
Talking to Business Recorder, Butt said that FBR is committed to achieve the target of Rs 1588 billion by the end of the current fiscal year. In this regard, the FBR is closely monitoring the performance of the Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs).
Sharing a few developments at the level of the field formations, he said that the Regional Tax Office-I (RTO) Lahore has recovered additional revenue of Rs 55 million from 16 restaurants. The RTO-I Lahore has also recovered an additional amount of Rs 500 million from 200 steel melters of Lahore. The deputation of the sales tax officers under section 40-B of the Sales Tax Act at business premises of units, particularly restaurants and hotels, has been able to improve collection due to compliance and enforcement in the field formations.
The RTO-II Lahore has also raised additional amount of Rs 7 million through effective monitoring of withholding taxes within the fertiliser sector. The RTO-Islamabad has generated additional revenue of Rs 1.2 million from restaurants and guest houses. Due to effective enforcement, these 12 restaurants and guest houses have agreed to pay an additional amount of Rs 2.6 million against actual deposited amount of Rs 1.2 million. Similar good performance has been shown by other RTOs, which would enable the tax machinery to achieve the target of Rs 1588 billion.
Butt said that recovery efforts are underway from banks, and the Board has to give statutory time period to banks, as prescribed under the law for compliance. However, the Federal Board of Revenue (FBR) is facing an uphill task to collect Rs 153 billion in the remaining period of June 2011 to achieve the downward revised revenue collection target of Rs 1588 billion for 2010-11. Sources told Business Recorder here on Monday that the FBR has provisionally collected Rs 1435 billion during July-June 20 (2010-11) against target of Rs 1588 billion, reflecting a shortfall of Rs 153 billion.