RTO-II Karachi revenue collection up 40pc in Jan

KARACHI: Revenue collection by Regional Tax Office (RTO) –II Karachi increased 40 percent in January 2020, largely owing to aggressive tax-base-broadening drives and effective monitoring of domestic sales, officials said on Thursday.

“The collection for the month of January 2020 increased to Rs13.35 billion when compared with Rs9.5 billion in the same month of the last year,” said sources at the regional tax office.

The sources said the efforts of broadening the tax base helped the RTO-II Karachi to bring new taxpayers in the system besides increasing revenue collection.

The BTB efforts of the RTO-II Karachi yielded 44 percent increase in return filing for tax year 2019. “The tax office received 121,300 tax returns for tax year 2019 by December 31, 2019 as compared with 84,100 income tax returns for tax year 2018,” sources said.

The head-wise collection of the tax office revealed that the collection of income tax increased 40 percent to Rs12.68 billion during January 2020 as compared with Rs9.03 billion in the same month of the last year.

The RTO-II Karachi has jurisdiction over sales tax collection from domestic supplies. The collection under this head increased 42 percent to Rs671 million in January 2020, as compared with Rs472 million in the same month of the last year.

The net collection of the tax office for the period July–January 2019/2020 increased 27 percent to Rs64.53 billion as compared with Rs50.84 billion in the corresponding period of the last fiscal year.

The collection of income tax increased 27 percent to Rs60.34 billion during first seven months of the current fiscal year, compared to Rs47.47 billion in the same period of the last fiscal year.

The sales tax collection posted growth of 23 percent to Rs4.14 billion during July-January 2019/2020 against Rs3.36 billion in the same period of the last fiscal year.