The Federal Board of Revenue (FBR) has directed all Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs) to submit revised "Withholding Tax Performance Report" of income tax and sales tax, ensuring category-wise reporting of collection by the field formations.
According to the FBR's instructions issued here on Tuesday, the growing importance of withholding tax and its contribution to total revenue is increasing with the passage of time. In an un-documented economy like Pakistan, imposition and effective monitoring of withholding tax is necessary not only to generate sizeable revenue but also to document withholding transactions.
Keeping in view the enormous potential of withholding tax regime, a more focused monitoring of Income Tax and Sales Tax withholding tax provisions and performance based reporting from the field formations is the need of the hour. As such, now the performance evaluation of the officers posted in withholding zones shall be done on the basis of the enclosed proforma of "Withholding Tax Performance Report" of Income Tax and Sales Tax separately.
The Chief Commissioners are also requested to evaluate the performance of "Unit In charges" working in WHT zones on new proforma, FBR said. In view thereof and in supersession of existing proforma on the subject the "Withholding Tax Performance Report" of Income Tax and Sales Tax has been revised making it more specific and to ensure category-wise reporting of collection by the field formations.
The Withholding Tax Performance Report of Income Tax and Sales Tax on the revised format for the month of January, 2015 in respect of each Unit In-charge of WHT Units of each LTUs and RTOs may kindly be sent by 20-02-2015. Subsequently, monthly report should be sent to the Board by 10th of each month in respect of each Unit In-charge of WHT Units of each LTUs and RTOs, FBR added.