KARACHI, March 16: The Large Taxpayers Unit (LTU), Karachi, recorded an increase of Rs24.402 billion or 49 per cent in revenue collection during the last eight months (July-Feb) of the current fiscal year as compared to Rs16.427 billion in the corresponding period last year.

Officials said on Thursday that the collection under withholding tax regime continued to be a major contributor towards the exchequer. The LTU collected withholding taxes amounting to Rs4.633 billion, an increase of 29 per cent as compared to Rs3.587 billion collected in the corresponding period last fiscal year.

As a result of audit, the income tax side collected taxes out of demand created to the tune of Rs2.652 billion or 44 per cent increase over the corresponding period when collection stood at Rs1.848 billion.

“The emphasis of the present tax management is to broaden the tax base. The LTU Karachi is digging out new taxpayers dealing with multinational but not appearing on the National Tax Roll,” the officials said, adding that the information on this score was being forwarded to the quarter concerned for further action.

“The higher tax collection indicates that the growth in economy continues and fair polices of the government are fully working and the taxpayers are responding to the confidence reposed by the Central Board of Revenue in them,” the officials said, adding that the growth in economy was matching with the growth in collection of taxes.

The tax returns filed under the Universal Self-Assessment Scheme (USAS) are considered final but in order to put a check on voluntary compliance and fulfilling legal obligations, monitoring through desk audit (without any contact with taxpayers) of cases is carried out.

The officials said the voluntary compliance by LTU’s clients (taxpayers) was satisfactory, as so far no case of non-filer had been identified. However, there is a growing concern amongst tax collectors that without proper education of taxpayers, intended level of compliance can not be achieved. Though the CBR has been issuing educational materials, such as handouts, pamphlets, leaf lets and advertisements in newspapers, yet a through campaign is required.

Although the LTU has conducted workshops and seminars for the organized sector to educate them, there is a strong need that such activities are held at the lower level or with unorganized sector of the economy.