Federal Board of Revenue Large Taxpayer Office Karachi for the first time crossed one trillion benchmark of half-yearly collection by incurring taxes amounting to Rs.1221 billion during July to December 2023.
Commissioner Inland Revenue LTO Karachi, Girdhari Mal, said that H1 FY 2023-24 tax collection witnessed positive growth in banking, cotton ginning, electric and electronics, FMCGs. On the other hand Insurance, pharmaceutical, software and shipping sectors while automobile and auto parts, construction and oil exploration sectors remained in negative zone.
Commissioner, Girdhari Mal, said that target was achieved despite nominal growth on imports at 2.5 % and as such substantial growth of 47 % has been achieved in domestic taxes.
Another benchmark of Rs. 300 billion was reached in monthly tax collection of December 2023 as LTO generated taxes of Rs.320 billion against the assigned target of Rs.316 billion, he stated adding that it depicted 39% increase as compared to Rs.230 billion collection of December 2022.
Refund of Rs.75 billion were issued during H1 FY 23-24 with 103% increase over previous year’s Rs.36 billion while the volume of Advance taxes increased from Rs.230 billion of H1 FY 22-23 to Rs.385 billion collected in six months of current fiscal year.
LTO has conducted an in depth analysis of tax at domestic and import stages while collection ratio from direct taxes and non-withholding taxes improved as well.
Sharing details of cases under litigation, the Commissioner IR said that there were 1019 cases for hearing in the apex court involving an amount of Rs.38 billion, 2408 cases in high courts involving disputed amount of Rs.331 billion while Tax Tribunals were hearing 4787 cases having accumulated tax amount over Rs.1121 billion.
On another query, he said efforts were under way for tax compliance and filling as it was observed that there were a certain number of people who were carrying out substantial transactions but they were non-filer.
He added that action is being taken to stop provision of certain facilities to them and their phone sims could be blocked.
