KARACHI: The Large Taxpayers Office (LTO), Karachi announced a remarkable achievement as it had collected Rs 2,076 billion in the outgoing fiscal year, surpassing the previous financial year’s collection by Rs 391 billion.
Despite facing significant economic challenges, the LTO, the largest revenue generating arm of the Federal Board of Revenue (FBR), demonstrated resilience and successfully surpassed Rs 2 trillion mark, said Commissioner Inland Revenue Girdhari Mal during a press briefing held at the LTO office in Karachi.
He acknowledged the adverse conditions experienced during the past fiscal year, including tight budgetary measures, trade deficit, rupee devaluation, political crisis, and a decline in imports and exports. These factors not only posed unprecedented conditions for the LTO but also resulted in a significant dip in GDP growth, which stood at a mere 0.29 percent.
Mal emphasized that despite these challenges, the LTO managed to collect a staggering Rs 2076 billion in revenue. After accounting for Rs 86 billion in refunds, the net revenue collection for LTO amounted to Rs 1990 billion, reflecting a noteworthy 24 percent growth.
Domestic tax and tax on imports reported growth of 56 percent and 3 percent, respectively. However, sales tax and federal excise duty experienced negative growth of 80 percent and 24 percent, respectively.
The commissioner highlighted that income tax played a pivotal role in this achievement, contributing Rs 893 billion to the overall revenue collection of LTO, showing a substantial 64 percent growth compared to Rs 544 billion collected during the previous fiscal year.
In addition to the impressive revenue collection, Mal shared that approximately Rs 433 billion was still entangled in litigation involving 3649 cases.
The Commissioner Inland Revenue, who was joined by Abdul Qadeer Abbasi, Additional Commissioner Head Quarter LTO, and Anees Memon, Deputy Commissioner HR, during the press briefing, highlighted the collective efforts of the LTO team in achieving this milestone.
The successful revenue collection by the LTO is not only a testament to its commitment and efficiency but also underscores the importance of tax compliance in sustaining the country’s economic growth. With the challenges faced during the previous fiscal year, the LTO’s performance provides hope for a stronger financial future and underscores the resilience of Pakistan’s economy.
Copyright Business Recorder, 2023