KARACHI, Jan 14: The Regional Tax Office (RTO), Karachi collected Rs53.787 billion during the first half (July-Dec) of 2008-09, showing a growth of 38 per cent over the corresponding period last year when the collection stood at Rs38.968 billion.

The RTO has managed to collect 42.35 per cent of the target of Rs127 billion set by the Federal Board of Revenue (FRB) for 2008-09.

The RTO collected Rs42.272 billion out of income tax deductions made at source by withholding agents compared to Rs35.437 billion recorded in the same period last year, a growth of 19 per cent.

Due to slow and depressed activity in capital markets collection of income tax on sale and purchase of share under section 233A recorded a steep fall to Rs152 million during the period under review compared to Rs1.045 billion collected in the same period last year.

Similarly, the collection of Capital Value Tax (CVT) on purchase of shares dropped to Rs89 million in the July-Dec period from Rs965 million in the corresponding period last fiscal year.

Revenue collection on account of 0.2 per cent tax on cash withdrawals from banks under section 231A rose to Rs1.077 billion as against Rs0.466 million in the same period last year.

Though this may have proved to be a boon for revenue collectors but it equally gave them their life time shock because this indicates that people are not ready to document their incomes and instead are ready to pay tax.

RTO Director General Asrar Raouf told Dawn that all measures were being taken not only to enhance tax-to-GDP ratio but also widening of tax net.

He said in RTO Karachi there had been 462,000 taxpayers last year but the same had been increased to 800,000 up to December 2008 and hoped that this could be taken to one million by the close of current fiscal year on June 30, 2009.

The RTO staff and officers have embarked upon a plan where the tax net as well as revenue will keep achieving higher growth even under current economic slowdown.

Mr Raouf said measures had been taken to tap all avenues of taxpayers and tax collection by adopting modern and foolproof steps.

In the past the revenue collectors never moved out of their offices but now tax facilitation kiosks and mobile units with all necessary documents and guidelines under supervision of officers started reaching out at taxpayers.

This helped many reluctant taxpayers to get National Tax Number and also file their returns, he added.