January 7, 2003	Tuesday	Ziqa’ad 3, 1423

ISLAMABAD, Jan 6 : The performance of newly established Large Taxpayers Unit (LTU) at Karachi which was part of the tax machinery restructuring, fell far short of the expectations during the first six months of its coming into being.

The much trumpeted establishment of LTU at Karachi in July 2002 was the first step of the targeted reforms aimed at providing maximum facilitation to the large taxpayers and the tax officials in order to increase the revenue.

Official figures made available to Dawn on Monday, showed the revenue collected under the head of direct taxes by the LTU was constantly on decline during the first six months of its establishment.

The LTU collected Rs6.8 billion under the head of direct taxes during the July-December period of the current financial year from the 294 taxpayers registered with the unit against the target of Rs9 billion set for the same period, showing a decline of 24.44 per cent.

The tax authorities were worried about the achievement of Rs28 billion target under the head of direct taxes set for the 12 months of the current financial year.

This means that the tax authorities at LTU would now have to collect around Rs20 billion during the second half of the current fiscal to achieve the target.

According to the sources, when the same taxpayers were in the jurisdiction of the company zone, the revenue performance of direct taxes were picking up constantly.

Last year, 20 per cent increase was registered in the revenue collection from the same taxpayers collection under the head of direct taxes, said the sources.

When reached by Dawn, the official spokesman and member direct taxes, Vakil Ahmad Khan has admitted that the revenue under the head of direct taxes in the LTU were on decline during the first six months of its establishment.

He said that the two objectives of the LTU were achieved as more facilitation were provided to the taxpayers along with more facilitates to the tax officials.

However, Mr. Khan said he would visit the LTU on Tuesday to discuss the issue with the officials concerned and work out measures and proposals to achieve the target under the head of direct taxes for the current fiscal.

He said that the chairman CBR has now given him and the members sales tax the assignment to visit the unit and discuss the issue with the officials concerned and in future monitor the revenue performance of the LTU.