FBR to collect extra Rs15bn by monitoring WHT

SOHAIL SARFRAZ

ISLAMABAD: The Federal Board of Revenue (FBR) has estimated collection of additional Rs 15-20 billion through effective monitoring of withholding taxes in the second half of 2011-12.

Sources told Business Recorder here on Tuesday that FBR Enforcement Wing, headed by Aminullah Khan, a BS-21 officer, has chalked out a comprehensive plan to specifically deal with hurdles regarding withholding taxes. Amin, who is the drafter of the Standing Operating Procedure (SOP) on withholding taxes, has estimated to generate an additional amount of Rs 15-20 billion through proper enforcement of withholding tax provisions contained in the Income Tax Ordinance, 2001.

Top tax official had also informed the last meeting of the Tax Reform Coordination Group about the potential of withholding taxes and estimated revenue of over Rs 15 billion through effective monitoring. The additional amount of over Rs 15 billion withholding taxes could be generated by the innovative ideas brought forth by FBR Member Enforcement & Accounting in the Headquarters.

As per FBR’s plan, the FBR has proposed introduction of a scheme and allotment of Withholding Tax Identification numbers to all withholding agents across the board by January 31, 2012. Similar scheme will be implemented for Sales Tax Withholding Agents as some of the prescribed persons will be common. Various persons such as Federal and Provincial Governments and their attached departments, LTU taxpayers and certain other categories are required to withhold Sales Tax also. Here again, the position is disappointing as out of around 1000 persons holding FTN, only 34 are e-enrolled for filing statements.  There is huge default in filing of annual as well as monthly statements. Out 27,282 withholding agents who actually filed statements for tax year 2011, 8215 defaulted in filing all the four quarterly statement. Out of 900 registered persons of LTU Karachi, 204 did not intimate about Sales Tax withheld by them. Likewise, 129 out of 360 registered person of LTU Lahore behaved on the similar lines while position of LTU, Islamabad is also not different.

Under the plan, the department would issue notices to defaulters within 60 days of their enlistment. Later, the Enforcement of Statements has to be done within 90 days, sources added.