KARACHI, June 19: The Large Taxpayers Unit (LTU) Karachi is faced with an uphill task of collecting a huge amount of Rs110 billion during the next 10 days to meet its revenue target fixed by the Federal Board of Revenue (FBR) at Rs714 billion for the current fiscal year.

Official sources disclosed on Tuesday that LTU Karachi’s net revenue collection up to June 18, 2012, stood at Rs604 billion, showing a shortfall of Rs110 billion against FBR’s fixed target of Rs714 billion (net) for the current fiscal year ending on June 30.

However, sources said that the LTU may not be able to achieve the target assigned by the FBR because to collect the balance amount of Rs110 billion within the next 10 days was not possible, although gross revenue collection up to June 18 stood at Rs663.5 billion or was 13 per cent higher over last year’s gross revenue collection of Rs588.6 billion which was achieved during the entire fiscal year ended on June 30, 2011.

Tax experts said it was highly encouraging that the LTU Karachi, under given circumstances where industrial and commercial activity is being hampered by power and gas shortages, managed to achieve a growth of 13 per cent in revenue collection.

The FBR had given a tough task to LTU Karachi of achieving Rs714 billion (net) revenue budget which is 41 per cent or Rs206 billion higher over last year’s net collection of Rs508 billion.

When looked at total national revenue budget fixed at Rs1,952 billion for current fiscal (2011-12), the LTU Karachi’s share is over one third at Rs714 billion (net).

However, insiders told Dawn that it was next to impossible to achieve the target as it was assigned without any objectivity.

At a time when the country is passing through worst economic crisis where inflation is high, direct foreign investment has dwindled, no fresh investment is being made by the local business community and on the contrary there is a flight of capital, then as to how revenue collection could be improved amid shrinking economic activity, an LTU official confided to Dawn.

Sources said that the LTU Karachi collected Rs170 billion (gross) on account of income tax up to June 18, 2012 which stood higher by 23 per cent over Rs138 billion collected during entire fiscal year of 2010-11.

Similarly, sales tax collection stood higher by 15 per cent at Rs447.3 billion up to June 18, 2012 as against Rs388.5 billion collected up to June 30 of last fiscal year.The LTU Karachi up to June 18, 2012, after creating demand collected Rs31.3 billion in revenue as against Rs29.8 billion recorded last fiscal year up to June 30, 2011.

However, LTU sources believe that during the next 10 days, another Rs10 billion could be collected which will take the total to Rs40 billion on account of revenue demand raised and collected.