FBR forms new strategy to enhance revenue during FY2017-18

ISLAMABAD: The Federal Board of Revenue has formed a comprehensive withholding monitoring and audit strategy (2017-18) for strengthening the ongoing revenue enhancement efforts of the field formations for the current fiscal year. 

The strategy envisages devising Quarterly Withholding Audit Plan (QWAP) by each field formation one week before the beginning of new quarter. It envisages withholding audit of at least five cases per month out of the Board's identified list of withholding agents, to be included in the QWAP. 

The strategy included periodic monitoring/audit of Excise and Taxation Department, property registration/recording authorities/housing societies, national saving centre(s)/post office(s) and Discos/CPPA, to ensure timely collection of withholding taxes as per prescribed tax rates (for filers/non-filers). It envisages quality desk audit(s) of at least 10 WH statements per month, of potential revenue yielding entities by each unit incharge, to be submitted to the CIR concerned.

The strategy also includes proactive monitoring of procurements (i.e. key tender notices published in the newspapers regularly intimated by the Board); special monitoring of payments by non-profit organization(s) (NPOs); pro-active withholding monitoring of all ongoing projects/programmes including assignment account (development/non-development), revolving fund accounts, provincial ledger accounts (PLAs), special drawing accounts (SDAs) and maintenance of database of their budget allocations, releases, expenditure and tax deductions/deposits thereof with risk-based, periodic audit of at least 2-3 entities (as assigned) per quarter; proactive monitoring of salaries disbursements especially concerning large private and corporate sector entities including statutory authorities/autonomous bodies; ensure effective withholding monitoring of key sectors such as telecom, banks, oil/gas/power, tobacco, textile, cement, sugar, cotton ginners, flour mills and others; minimum 10 percent recovery out of net collectable WH demand on monthly basis; recovery of remaining four-fifth of sales tax (MOST-WH) from government vendors; addressing the shortfall identified in revenue spinning sections as per monthly DRS data circulated by exploring revenue potential in other withholding sections; awareness workshops for education of key withholding agents/government DDOs and quarterly conference of commissioners (WHZs/others) and periodic visits by Board team. Considering these features as included in the strategy, all RTOs/LTUs have been requested to prepare activity plan to ensure smooth, timely implementation of the strategy for maximum exploration of the revenue potential.