LTUs and RTOs to be assigned tax targets: Commissioners'' moot today

The Federal Board of Revenue would communicate monthly and quarterly revenue collection targets to the Chief Commissioners of Large Taxpayers Units and Regional Tax Offices here on Tuesday (September 13) to meet the annual target of Rs 1952 billion for 2011-12.
Sources told Business Recorder here on Monday that the Chief Commissioners Conference would be convened here on Tuesday under the chairmanship of Salman Siddiq to give break-up of revenue collection target of Rs 1952 billion to the Chief Commissioners of LTUs/RTOs. The FBR has finalised the break-up of revenue collection targets taking into account realistic estimates submitted by the field formations.
According to sources, there is no change in the annual revenue collection target of Rs 1952 billion for 2011-12. A major chunk of revenue to the tune of Rs 80-90 billion would be collected from administrative and enforcement measures during current fiscal. The measures included monitoring of withholding taxes, recovery of illegal sales tax adjustments and pursuance of tax related cases in courts for early settlement. The performance of each Chief Commissioner of RTO and LTU would be monitored on monthly basis. The monthly collection of the Chief Commissioners would be subsequently reported to the Finance Minister on monthly basis.
The Chief Commissioner Conference would also discuss key issues including audit paras before the Public Accounts Committee, documentation drive and broadening the tax base. Sources said that the FBR and the Chief Commissioners of LTUs/RTOs would discuss the strategy to improve collection from withholding agents. A major portion of direct taxes has been collected from withholding taxes.
The FBR has decided to give top priority to improve collection of withholding taxes, which would result in major increase in collection during 2011-2012. The analysis of withholding statements would be used as an effective tool to increase number of taxpayers and revenue collection during current fiscal year.
The FBR and the Chief Commissioners of LTUs/RTOs would chalk out a joint strategy to compulsory sales tax registration of units, which are liable to obtain registration but operating out of the tax net. Through compulsorily sales tax registration under the Sales Tax Act, 1990, the FBR has estimated to increase the total number of persons registered with the sales tax department. Beside new plan to document rich people, the FBR will also share a comprehensive plan to improve compliance by non-filers, nil-filers and short-filers of returns.