LTU Karachi exceeds June target by Rs8 billion

KARACHI: Large Taxpayers Unit (LTU) Karachi has surpassed its collection target for the month of June 2020 by Rs8 billion by collecting a total of Rs118 billion despite a partial shutdown of economic activities because of counter-virus restrictions, a statement said of Monday.

According to a statement issued on Monday the Federal Board of Revenue (FBR) had tasked the LTU with a collection target of Rs110 billion for the month despite challenging economic conditions owing to novel coronavirus COVID-10 pandemic that also claimed the lives of many members of LTU Karachi officials.

The LTU Karachi is the largest revenue collection wing of the FBR amongst 24 tax offices in the country and collects around one-third of tax revenue collection at national level.

Badaruddin Ahmed Qureshi, Chief Commissioner, LTU Karachi while talking to The News, said the unit had taken measures to achieve the monthly target in June 2020, through confidence building of taxpayers.

Qureshi said the unit was working with limited manpower due to the spread of coronavirus. “As far total revenue is concerned, the LTU Karachi posted 4 percent growth during 2019/2020 despite economic lockdown,” he said.

The unit collected Rs1,274 billion during the fiscal year 2019/2020 as compared with Rs1,230 billion in the preceding fiscal year, he said.

Qureshi said in order to mitigate the negative impact of COVID-19 and address liquidity concerns of taxpayers, the unit issued Rs38 billion refunds of income tax and sales tax during last fiscal year as compared with Rs17 billion in the preceding fiscal year, showing 123 percent growth.

He said the unit had not taken any harsh measure to achieve the target. “However, strong enforcement as well as on-site monitoring of production was reinforced and the exercise resulted in revenue growth in oil and gas, sugar, and cement sectors,” he added. Qureshi also said various tax evasion and tax avoidance cases had been detected and established during the last fiscal year, which helped the unit post growth in revenue collection.