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KARACHI, July 10: The Large Taxpayers Unit (LTU), Karachi has made net collection of Rs24.630 billion in direct taxes during outgoing fiscal 2002-03, showing a fabulous growth of 11.12 per cent over Rs22.187 billion collected a year ago.
The government in order to facilitate large taxpayers paying over Rs25 million in tax and having a turnover of above Rs500 million created a separate unit under the World Bank funded programme.
In total 292 companies which were previously paying their taxes with Corporate Region of Income Tax, Karachi, were shifted to LTU from July 1, 2002.
According to provisional figures issued by the LTU here on Thursday, the Unit paid Rs8.268 billion or 27.29 per cent more towards refund over last year’s payment of Rs6.496 billion, which means that gross revenue collection stood at Rs32.899 billion or 14.70 per cent higher against last fiscal’s collection of Rs28.683 billion.
There was tremendous growth of 186.27 per cent in workers welfare fund (WWF) created by the Unit during the year which stood at Rs1.888 billion compared to Rs659.482 million recorded last year. Similarly, income tax demand raised by the unit also rose by 9.27 per cent to Rs6.705 billion from Rs6.136 billion a year ago.
Due to better monitoring the LTU enhanced its revenue collection under section 153 pertaining to supply, contracts and services by 122.42 per cent at Rs1.698 billion as against Rs763.565 million recorded last fiscal.
The revenue collection towards advance income tax increased by 17.57 per cent at Rs16.885 billion compared to Rs14.361 billion collected during 2001-02 financial year.
Similarly, the sales tax collection at LTU registered a tremendous growth of 76.48 per cent at Rs27.707 billion as against Rs19.024 billion collected during 2001-2002.
The central excise collection has registered a growth of 17.76 per cent and stood at Rs4.909 billion as against Rs4.169 billion collected during last fiscal.
Giving other details of the LTU performance the Commissioner Income Tax Enforcement and Collection Division Asrar Raouf told the newsmen at the Unit office that total exemption requests received by the Unit under different sections of Income Tax Ordinance 2001, stood at 1454.
He said that the LTU’s collection in accordance with law for issuance of exemption certificate and short payment under section 147 stood at Rs2.481 billion. This amount had been driven on issuing and processing 1332 exemption certificates, he added.
On appeal side, Asrar Raouf said the Unit gave effect to 61 appeals and raised total demand of Rs228 million, and refund determined was at Rs490 million. As a result, he said revenue collection on this account stood at Rs164 million.
The Unit during the year (2002-03) made 44 rectifications resulting in total demand raised of Rs1.187 billion with net collection at Rs753 million. In total 19 cases were penalized which created a demand of Rs187 million but did not collect any amount on this account which indicates that the LTU’s main objective is to facilitate and not harass taxpayers.
LTU TO EXPAND TAX NET: The Director General (DG) Large Taxpayers Unit (LTU) Akhtar Jamil Khan on Thursday said that after the successful first year’s performance of the Unit the government plans to bring more taxpayers under its ambit.
Briefing the newsmen at the LTU, he said that presently 292 taxpayers are listed with the Unit which would be raised to 587 from the current fiscal (2003-04).
He said since the reforms process initiated by the government last year had succeeded and desired results of revenue collection had been achieved more taxpayers would be included in the Unit.
Akhtar Jamil said in order to accommodate more taxpayers the government had now allowed to bring all the subsidiaries under the LTU ambit where a different culture has been introduced.
He further said that the government had also lowered the conditions for allowing companies to be handled by the LTU. The turnover conditions of Rs500 million had been lowered to Rs400 million. Similarly, he said tax paid by a company had been reduced to Rs20 million from Rs25 million.
During the briefing the DG LTU was assisted by additional collector of Sales Tax and Central Excise Wahid Khursheed Kunwar, Commissioner of Income Tax Mohammad Faiyaz Khan and Commissioner Income Tax Enforcement and Collection Division Asrar Raouf.
