LTU Karachi posts 25pc revenue growth in Dec 2014

KARACHI: The revenue collection of the Large Taxpayers Unit (LTU) Karachi has registered an unprecedented growth of 25 percent to Rs93 billion during December 2014 as compared to Rs75 billion in the same month last year.
According to the official figures made available to The News on Monday, the collection of direct taxes posted phenomenal growth of 39 percent to Rs36 billion as against Rs26 billion during the month under review.
Similarly, the monthly tax collection also recorded 16 percent growth in indirect taxes to Rs57 billion as compared to Rs49 billion. The unit achieved 93 percent of tax target for the month despite economic odds, political instability and poor law and order situation.
For the month, the collection of the LTU Karachi was threatened due to oil shock and ease in inflationary pressure. Collection from POL products is the major component for LTU Karachi as most of oil exploration and marketing companies are registered with the unit, which had already declared inventory losses and decline in supplies in terms of values.
The international oil prices registered a sharp decline of around 50 percent during the last few months. Locally, it also eased by around 22 percent.
Sources in the LTU Karachi said to appreciate the performance, Federal Board of Revenue Chairman Tariq Bajwa paid an unscheduled visit to the unit on January 2.
An official at the LTU Karachi on the condition of anonymity said the unit had realised the impact of oil shock and launched audit and recovery drive from companies in the oil sector.
The official said additional Rs10 billion have been recovered under advance payment, besides many other cases had been finalised to secure revenue.
The revenue collection of the unit during the first half of the current fiscal year also posted 18.36 percent growth to Rs419 billion as against Rs354 billion during July–December 2013/14. The collection under direct taxes posted a growth of 20 percent to Rs78 billion as compared to Rs63 billion.
Similarly, the collection under indirect taxes posted growth of 18 percent to Rs344 billion from the previous figures of Rs291 billion.
The LTU Karachi contributes around 36 percent collection at the national level where around two other LTUs and 18 regional tax offices are operational.
At the national level, the Federal Board of Revenue (FBR) collected around Rs1,158 billion during July-December against Rs1,031 billion in the corresponding period of 2013/14, showing an increase of 13 percent, whereas the monthly collection was Rs255 billion in December 2014 against Rs231 billion in December 2013, showing an increase of over 10 percent.
The sources in the LTU Karachi said any slippage in the collection of the unit would result in significant fall at the national level.
The sources said the robust collection by the unit was only possible due to Chief Commissioner Inland Revenue Dr Muhammad Irshad, who brought structural changes in the unit and mobilised human resource for the revenue collection and facilitation of the taxpayers.
The sources also said the LTU Karachi had recommended one-month salary as a reward for its staff and officers.