LTU Karachi achieves Rs1 trillion collection mark

KARACHI: The Large Taxpayers Unit (LTU) Karachi surpassed Rs1 trillion collection mark on Tuesday showing 16.25 percent growth over the last year despite adverse collection from various sectors.

Officials at LTU Karachi said the collection of the unit stood at Rs1,001 billion

during July 1, 2017 to May 15, 2018 as compared with Rs861 billion in the corresponding period of the last fiscal year.

They said the unit reached Rs1 trillion mark last year on June 15.

LTU Karachi is the major revenue contributor towards collection at the national level. The unit shares around 35 percent of the total collection of the Federal Board of Revenue (FBR).

Sales tax collection of the unit posted 21 percent growth for the period to reach at Rs770 billion during July 1-May 15 (FY18) as compared with Rs634 billion in the corresponding period of the last fiscal year.

Sales tax collection at import stage registered 17 percent growth to Rs597.2 billion during the period under review as compared with Rs509.5 billion in the corresponding period of the last fiscal.

LTU Karachi officials said this amount was collected by customs authorities and transferred to the unit.

They said FBR had been asked several times to depute officials of Inland Revenue at the Customs to realise the actual collection, because it appeared to be less considering large volume of imports.

The collection of sales tax domestic, however, registered 33 percent growth to Rs181.5 billion as compared with Rs137 billion in the same period of the last year.

Officials attributed the significant growth to higher amount of sales tax collection from petroleum products during the period.

They, however, said that this collection would be eased in months to come because of reduction of sales tax on POL products.

Income tax collection declined by one percent during the period to Rs170.4 billion from the previous year’s Rs171 billion.

Officials said that several sectors had shown losses in their financial accounts whereas reduction in corporate tax rate was also one of the biggest factors in the decline. The major fall of income tax was recorded from the banking sector.

The collection of federal excise duty registered two percent growth to Rs56.5 billion as compared with Rs55 billion.

Officials said that slow growth in duty collection was due to introduction of third slab for tobacco sector, which not only reduced the cigarette prices but also eased the collection growth.