The percentage of withholding taxes in achievement of annual budgetary target of Regional Tax Offices ranges between 89-95 percent and now Federal Board of Revenue (FBR) has picked nine categories of withholding agents including banks for improving revenue collection during 2015-16.
It is learn that the FBR has sought Regional Tax Offices (RTOs) strategy adopted for effective monitoring of withholding agents particularly banks, town Muncipal Administrations (TMAs), government departments/FTN holders, District Account Officers (DAOs), power distribution companies (DISCOS), cotton ginners, educational institutions, contractors and private sector salaries.
In this regard, the FBR has issued instructions to the field formations on the Commissioner Withholding Zones Conference to be held on February 11, 2016.
The FBR has further directed the field formations that the number of withholding agents falling in each category should be mentioned along with strategy adopted by the RTOs to monitor each of the said categories of such agents.
According to the FBR, the purpose of the Commissioner Withholding Zones Conference is to review the withholding performance of the RTOs up to January 1, 2016 and discuss the strategy to achieve the budgetary target set for the remaining quarters of 2015-2016.
The FBR said that the percentage of the withholding taxes in the achievement of the budgetary target is respect of the RTOs ranges between 89 and 95 percent. The implementable strategy with focus to real time monitoring of the withholding taxes is imperative and the only sure way to achieve the assigned revenue collection targets, sources said.
The FBR has directed field formations to share mechanism adopted by the withholding agents to differentiate between the filers and non-filers for collection of higher rates of withholding taxes from non-filers. Whether the RTOs have any mechanism to cross verify correct rates of withholding taxes from filers and non-filers.
RTOs will inform the FBR about the section-wise monitoring of all withholding agents. Total population of withholding agents and updated status of monthly and annual statements filed vis-à-vis the total number of withholding agents up to June 31, 2016.
The Commissioners of Withholding Zones would also inform the FBR about the number of sales tax returns desk audited with respect of sales tax withholding as envisaged under sales tax law, the FBR added.