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RTO Karachi posts 25pc growth in Dec collection

Business

January 8, 2021

KARACHI: The Regional Tax Office (RTO) Karachi has posted 25 percent growth in revenue collection for the month of December 2020 owing to three-time increase in tax payment with tax returns, sources said on Thursday.

The RTO Karachi collected Rs9.71 billion in December 2020 as compared with Rs7.79 billion in the same month of the last year.

Sources said that on the directives of Chief Commissioner Inland Revenue of RTO Karachi, Nazir Ahmed Shoro, the tax office accelerated its efforts to ensure compliance of income tax return filing.

The efforts resulted in 300 percent growth in revenue collection to Rs1.66 billion in December 2020 as compared with Rs418 million in the same month of last year.

The tax office also conducted assessment exercises and recovered Rs113 million against tax demand in the month under review as compared with Rs20 million, showing a growth of 465 percent.

Sources said that due to the coronavirus pandemic, economic activities remained lacklustre during the current fiscal year. However, revenue collection witnessed improvement in December 2020, as the government decided not to impose strict lockdown for the second wave of Covid-19.

The collection of withholding tax from cash withdrawal registered 22 percent growth to Rs953 million in the month under review as compared with Rs782 million in December 2019.

Similarly, withholding tax from newly manufactured motor cars witnessed 222 percent growth to Rs222 million in December 2020, as compared with Rs69 million in the same month last year.

Likewise, the collection of withholding tax on sale and purchase of immovable properties witnessed growth of 100 percent and 89 percent, respectively.

A huge amount of Rs4.13 billion was collected on profit on debt in the month under review as compared with Rs4.02 billion in the same month last year.

Collection of the tax office during the first half of the current fiscal year was at Rs53.77 billion as compared with Rs48.31 billion in the same half of the last fiscal year, showing an increase of 11 percent.