Regional Tax Office (RTO), Islamabad has registered growth of 32 percent in collection of Inland Revenue Taxes during July-December (2019-20) with major focus on market survey of the federal capital, registration of retailers and other trading sectors, enforcing filing of income tax returns by owners of immovable properties and sales tax collection from services sector.
According to the data compiled by the RTO Islamabad, Regional Tax Office, Islamabad has exhibited substantial & satisfactory improvement in domestic taxes in the Federal IRS Revenue Collection (i.e. Income Tax, Sales Tax, Federal Excise tax) depicting overall 32 percent net growth by collecting Rs 59,588 million IRS related taxes during the first six months up to December 31, 2019 of current fiscal year 2019-20 as compared to the collection of Rs 45,174 million made during the last corresponding period.
Collection of Sales Tax up to December 2019 was Rs 16,025 million which is 74 percent higher with satisfying increase of Rs 6,800 million than the collection of Sales Tax made up to December 31, 2018 which was Rs 9,225 million.
Similarly, Federal Excise Duty (FED) collection up to December 2019 was Rs 1,033 million which has been decreased to the tune of Rs 130 million than the collection of Rs 1,163 million made up to December, 2018 due to reduction of FED on air tickets.
Similarly tax collected under the Income Tax up to December 31, 2019 was Rs 42,530 million which is 22 percent higher with incredible increase of Rs 3,920 million than the collection of Income tax of Rs 38,610 million made up to December 31, 2018, data revealed.
Sources said that the aforesaid prosperous growth in the IRS Revenue Collection was achieved by the Regional Tax Office, Islamabad by complying with the policy measures of the FBR, fully focusing and concentrating on the goal achieving tasks, taking diligent administrative steps & effective monitoring efforts for raising revenue collection. The officers of the RTO, Islamabad are making utmost efforts not only to achieve but to surpass the assigned revenue targets for the current year.
The efforts include making survey of intended taxpayers in collaboration with the market committees of the concerned specified shopping/Markaz areas of the various sectors of Islamabad falling within the territorial jurisdiction of RTO Islamabad, negotiations carried out with the Islamabad Chamber of Commerce & Industry to facilitate the cottage industries in registration and tax payments.
Due to the aforesaid efforts, major trading sectors like brick kilns, marble industry, jewelers and other cottage industries falling within the territorial jurisdiction of RTO Islamabad were motivated/persuaded for the purpose of taking them on board of tax net. Due to taking effective measures, the number of registered companies, AOPs and individuals taxpayers for Income Tax purpose reached 18,425, 10,966 and 298,800 respectively and presently 6,092 companies, 2,373 AOPs and 111,472 individuals were able to file their income tax returns.
Similarly due to active motives of RTO Islamabad, number of sales tax registered units/persons reached 15,782 presently 6,092 companies, 2,373 AOPs and 111,472 individuals were able to file their income tax returns. Similarly due to active motives of RTO Islamabad, number of sales tax registered units / persons reached 15,782.
The RTO Islamabad is further looking forward to mobilize and boost the revenue collection within its jurisdiction by taking following measures:
Firstly, implementation of FBR's POS (point of Sale) real-time invoicing system / software on main shopping stores chains, restaurants, Tier-I retailers across the territorial jurisdiction of RTO, Islamabad.
Point of Sale (POS) integration with FBR software was mandated for branded and unbranded two sectors textile and leather goods sold by leading brands through out the country from July 1, 2019, under which 4231 outlets throughout the country were registered.
The system was to be followed by tier 1 retailers (super marts, chain stores, shops in air conditioned malls and retail-shops with 1000sq feet areas) and all restaurants in Islamabad from 1st of December 2019. Meetings were held with various market committees and restaurants associations. The date was extended till Dec 16 and then till December 31, 2019. So far 4750 retailers have been registered.
On expiry of deadline for installation of POS System, RTO Islamabad sealed various fine dining elite eateries at Kohsar Market and Beverly Centre in the Federal Capital. Operations continued till late night on new year eve. Premises de-sealed only after installation of the POS System by the restaurants. The operation was conducted as per law and in a very professional manner. RTO Islamabad has identified around 370 Tier-l retailers and 270 restaurants in the Capital territory Islamabad to be registered under the POS system.
Out of these 40 outlets under Tier-1 category and 16 restaurants have established connectivity with FBR.
Secondly, making liaison with the Capital Development Authority Islamabad for sharing of information regarding owners of immovable properties of certain sizes within territorial jurisdiction of ICT in order to compel them to file Tax Returns in line with the directions of the worthy chairman FBR to implement Section 114 of the Income Tax Ordinance, 2001 in its true spirit.
Thirdly, services sector in jurisdiction of ICT is specially being focused to enforce and monitor the provisions of Islamabad Capital Territory (Tax on Services) Ordinance, 2001,
Fourthly, enforcing supplementary tax collection in terms of Advance Tax under Section 147 of the Income Tax Ordinance 2001.
Fifthly, taking concrete enforcing measures in order to streamline taxation of banking sector etc. Sixthly is related to implementation of the FBR's policy of online registration system.
Besides that, RTO Islamabad has also launched a massive tax awareness campaign by taking many initiatives such as in order to promote tax culture and inculcate tax awareness among the young generation. RT'O, Islamabad has expended its outreach program to include young students of various Universities situated in Islamabad Capital Territory:
A team of young officers headed by Commissioner-IR, East Zone has been assigned the task to deliver lectures and hold question / answer sessions to the young students about various taxes being administered by the Inland Revenue Services like Income, Tax, Sales Tax, Federal Excise Duties and Capital Value Tax. The need is to inculcate tax culture at such a young age has been felt due to low tax to GDP ratio in tile region and to eradicate various apprehensions and misconceptions being propagated by the vested interests at various forums, FBR has recently launched some innovative progressive steps keeping pace with latest digital technology like drag & trace system, Point of Sale integration with FBR's database etc.
The success of such programs requires proper feedback, monitoring and it is hoped/expected that the young generation will play their pivotal role in the implementation of such programs.
For the some reasons a Tax Aassan App has been launched through which not only taxpayers can file their Tax Returns, make payment of tax but the consumers can verify their tax payments made at various retail outlets, shopping malls and restaurants, sources added.
Comments
Comments are closed.