02132016Sat
Last update: Sat, 13 Feb 2016 09am

Sales tax and FED collection: Islamabad RTO says first quarter target exceptionally high

Regional Tax Office (RTO) Islamabad has declared increase of 621 and 828 percent in revenue collection targets of sales tax and federal excise duty (FED) respectively, during the first quarter of 2013-14, as highly lofty for the said RTO.

Sources told Business Recorder here Tuesday that the Chief Commissioner RTO Islamabad has conveyed to the FBR about extraordinary increase in revenue collection target for the said RTO. The RTO has informed the Federal Board of Revenue (FBR) that the tax authorities have fixed exceptionally high revenue collection targets of sales tax and federal excise duty (FED) during first quarter of 2013-14 against same period of last fiscal year.

Chief Commissioner was of the view that the Islamabad Capital Territory is comparatively a smaller unit compared to Karachi, Lahore, Peshawar and other major cities where RTOs are well-established and revenue collection of the RTO Islamabad need to be seen within the said context.

It is learnt that the Chief Commissioner RTO Islamabad has informed the FBR that the sales tax and FED targets have shown increase of 621 and 828 percent respectively during the period under review.

According to the Chief Commissioner RTO Islamabad, the matter regarding revenue target has been re-clarified in light of meeting with the Chairman.

It once again re-emphasised that regarding the first quarter 2013-14 the budget fixed by FBR for sales tax was Rs 2090 million compared to last year budget at Rs 290 million likewise budget fixed for FED was Rs 733 million compared to last year fixation at Rs 79 million. The same shows an increase of 621 percent & 828 percent for sales tax and the FED accordingly, Chief Commissioner said.

The issue of fixation of first quarter budget for Sales Tax was discussed with the FBR. RTO had informed that during 2011-12 a collection Rs 1461 million in sales tax was received from FBR, deposited by Strategic Planning Division (NESCOM) which was reported by RTO, Islamabad in December, 2012. Regarding FED a collection of Rs 400 million received from PTA communicated by Board during the month of the September, 2012 was reported in final figure of June, 2013. The FBR has accordingly worked out budget of FED and sales tax on the figures taken by them in their collection for the month of September 2013.

In view of above, if the amount of Rs 146 million in sales tax from SDP and Rs 400 million in FED from PTA is excluded the actual collection figures for the first quarter 2013-14 would be different.

Regarding the collection under Advance Tax on Functions, Chief Commissioner said that the Advance Tax on distributors and retailers and Advance tax on fees paid to educational institutions is concerned, the RTO is working on the collection of these measures and RTO wise collection nation vide we (RTO) stand at number six. Further, Islamabad Capital Territory is comparatively a smaller unit compared to Karachi, Lahore, Peshawar and other major cities where RTOs are established.

Regarding the collection under section 149, 150, 234 and section 236 the collection shows the negative trend in sub heads to the section which normally happens at the punching stage of challans at DPC level.

It is hoped the factual position would clarify the discrepancy pointed out by the FBR. However, utmost efforts are being put in for betterment of collection under all heads and creation of demand on proper time, Chief Commissioner RTO Islamabad added.

Copyright Business Recorder, 2013