Karachi LTU collects Rs 130 billion in fiscal 2007

The Large Taxpayers Unit (LTU) Karachi has surpassed revenue target by collecting Rs 130 billion during the fiscal year 2006-07, depicting an increase of 41 percent.
According to provisional statistics made available to Business Recorder on Monday the unit had collected Rs 130 billion against the target of Rs 92 billion. The total collection has also registered a growth of 58 percent against Rs 81 billion collection in 2005-06.
LTU officials said the all time high collection was mainly contributed by Direct Tax Rs 83 billion, Sales Tax Rs 28.52 billion and Federal Excise Rs 17.48 billion.
The unprecedented growth in the collection was attributed to direct taxes where collection had depicted 200 percent increase against the collection of Rs 41 billion in 2005-06.
The direct taxes collection had also surpassed the budgetary target of Rs 51 billion, showing an increase of 62.74 percent, officials said, adding that an amount of Rs 13.862 billion had been collected only in June.
The heads of direct taxes collection included: current demand Rs 3.149 billion, arrears demand Rs 513 million, payment with return Rs 19.228 billion, advance tax Rs 56.083 billion, withholding tax Rs 11.11 billion, Capital Value Tax Rs 78 million, Workers Welfare Fund Rs 605 million and WPPF Rs 4.758 billion.
Similarly, collection of sales tax was stood at Rs 28.529 billion against Rs 26.9 billion in the corresponding year 2005-06, showing growth of six percent. The unit collected Rs 17.48 billion revenue in Federal Excise against the revised target of Rs 14.5 billion, registered increase of 20.55 percent. LTU Karachi has issued Rs 18.789 billion refunds in the fiscal year 2006-07 against Rs 13.291 billion issued in the same period of corresponding year 2005-06, they said.
Officials said, "the historic revenue collection is a reflection of continuos economic growth and increase in profitability of companies registered with the unit." They said that the unit's year-to-year growth was ahead of growth at national level, which was 17.5 percent. About Federal Board of Revenue's (FBR) current year budgetary target of Rs 1,025 billion, they said that the LTU Karachi would continue its efforts to contribute more in the coming years.