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FBR not satisfied with RTOs” and LTUs” performance

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  • Tanzil Faisal And Co
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  • April 16, 2014

FBR not satisfied with RTOs” and LTUs” performance

Date: April 16, 2014

The Federal Board of Revenue has expressed dissatisfaction over the performance of the Chief
Commissioners of Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs) in the
collection of estimated revenue through budgetary measures introduced in Finance Act, 2013.
Sources told Business Recorder here on Tuesday that the FBR has conveyed its concerns to the
Chief Commissioners at the conference held at the FBR House.

The Board has taken new taxation measures to the tune of Rs 200 billion in budget (2013-14).
However, the field formations have yet not shown revenue collection up to the mark, as
estimated from the budgetary measures for 2013-14. This has been conveyed to the Chief
Commissioners in the conference to see the estimated collection from new taxation measures
taken in budget and actual collection by each reformed unit in the field formations.

The Board is strictly analysing the revenue impact of major taxation related
enforcement/administrative measures taken in budget (2013-14). According to the sources, the
Board had asked the tax officials to manage revenue measures of income tax introduced through
Finance Act, 2013. The withholding statements have to be thoroughly scrutinised in the light of
provisions introduced through Finance Act, 2013.

Sources said that the Finance Minister had appreciated the performance of the Board and also
directed them to improve their performance in last quarter of the ongoing financial year. In the
Commissioners” Conference, we finalised a strategy to improve FBR”s tax collection. The
government was not going to announce any new relief so the commissioners were sensitised to
focus upon their collection target envisaged for the remaining two and a half month period.

Sources said that the government is committed to raise 0.75 percent FBR”s tax revenues through
abolishing tax exemptions and other broadening measures in the upcoming budget. Nearly 0.35
percent of GDP related revenues would be generated only through abolishing of different tax
exemptions currently being enjoyed by influential segments and powerful lobbies in the country.

The FBR has further directed the Chief Commissioners to focus on cases selected for audit,
current tax demand, recovery of taxes and monitoring of withholding agents and initiate recovery
in cases where stay from courts has expired six months period.

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