FBR recovers 96 % of its tax collection target for July

[Syed1]

ISLAMABAD: The Federal Board of Revenue (FBR) has recovered 96 percent of the tax recovery target fixed for the first month of the new financial year 2019-20, ARY News reported on Thursday.

According to FBR sources, the tax collection authority recovered 27 billion rupees more in July this year than the tax amount recovered in the first month of the previous fiscal year.

Initial recovery figures suggest that the volume of the tax recoveries in July remained 278 billion rupees, which is 27 billion more than the tax amount collected in July last year, FBR sources said.

The FBR had collected tax amount of 251 billion rupees in July 2018, sources said.

FBR sources have claimed that July 2019 has registered discernible hike in tax receipts and more increase in tax recoveries is expected next month.

The figures also indicated an obvious decrease in import taxes.

The government took financial measures of upto 770 billion rupees in federal budget for fiscal year 2019-20. A target of 5550 billion rupees tax collection was fixed in the budget for the ongoing financial year.

https://arynews.tv/en/fbr-recovers-96-tax-collection-target-july/



So FBR saw a rapid rise in revenue collection in the first month of the fiscal year and even met 96% of target. Meanwhile our free and fair media publishes the news as follows:

FBR misses July target by Rs14bn - Dawn
https://www.dawn.com/news/1497422/fbr-misses-july-target-by-rs14bn




Then they cry that internet trolls harass us

 

[WebGuru]

Dawn and Geo deserve whatever is coming their way...

 

[Savak]

The FBR is tightening the screws and is being more ruthless now

 

[Syed1]

The FBR is tightening the screws and is being more ruthless now

I think they are going to roll out a fixed tax system for retailers in the next month. Retailers will be separated into two or three categories depending on their annual revenue and then a fixed tax will be imposed. This one move will generate billions if not hundreds of billions.


There are millions of retailers in Pakistan and even if they are charged an annual tax of Rs. 10,000 on average imagine the earnings for the government.

 

[Savak]

I think they are going to roll out a fixed tax system for retailers in the next month. Retailers will be separated into two or three categories depending on their annual revenue and then a fixed tax will be imposed. This one move will generate billions if not hundreds of billions.


There are millions of retailers in Pakistan and even if they are charged an annual tax of Rs. 10,000 on average imagine the earnings for the government.

The key is to document the economy. They have to ruthlessly go after self employed people and unincorporated businesses, shops and the service sector. Going after the agriculturists will be the big achievement.

 

[Deewana Mastana]

This has to be done all across the board and target the main individuals and companies that have had a freehand for years end on. Pakistan is in the slumps and tax reforms is one of the solutions to help the depleted economy to get back onto its feet.

 

[WebGuru]

 

[Syed1]

This is what happens when you bring a hardworking, competent person on top.



Also Shahbar Zaidi made a career out of helping companies find loopholes in taxation systems to avoid taxes, now he himself is plugging all those holes

 

[Abdullah719]

The end of the first paragraph... "leaving many practitioners in a quandary about objective behind the move"

I mean, why would FBR want this information... Does anyone know??? Such a mystery!

 

[DRsohail]

Do not forget private hospitals.

 

[Pakpak]

This is what happens when you bring a hardworking, competent person on top.



Also Shahbar Zaidi made a career out of helping companies find loopholes in taxation systems to avoid taxes, now he himself is plugging all those holes

Expect essays from certain 'doctors'

 

[WebGuru]

Do not forget private hospitals.

Yea they will probably go against Private Hospitals

 

[Hasan]

This is what happens when you bring a hardworking, competent person on top.



Also Shahbar Zaidi made a career out of helping companies find loopholes in taxation systems to avoid taxes, now he himself is plugging all those holes

Pls note that there is a difference between tax avoidance and evasion. Avoidance is legal whereas evasion is a criminal offence. Mr Zaidi is a tax expert and previously worked as a Partner with PWC Pakistan advising his clients on designing most tax efficient structures (tax avoidance). He is probably the leading authority on the Pakistani tax regime and more capable than any other Pakistan to lead the reform of the tax regime.

 

[Abdullah719]

Karachi sees 32 percent jump in tax collection in first quarter

Spoiler

KARACHI: Regional Tax Office (RTO)-II Karachi posted 32 percent jump in revenue collection to Rs26.43 billion in the first quarter of the current fiscal year as tax rates on non-compliance increased during the period, reported The News.

Revenue collection by the regional Karachi office amounted to Rs19.98 billion in the July-September period of last fiscal year.

The tax office in its BTB campaign in recent past issued notices to a large number of business individuals operating in various sectors. Notices were also issued to those who make big transactions but are not on the tax roll. The sources also attributed the higher revenue growth to change in tax laws and burdening of the non-compliant taxpayers with 100 percent increase in withholding tax rates, claimed the report.

The Federal Board of Revenue imposed 100 percent higher withholding tax rates on various transactions by non-filers of tax returns under the tenth schedule of Income Tax Ordinance 2001 introduced in the current fiscal year’s budget.

The break-up of revenue collection of the RTO-II Karachi showed that the collection of income tax registered 35 percent growth. The tax office collected Rs24.72 billion during July-September 2019 compared with Rs18.28 billion in the same period of the last fiscal year.

The collection of withholding income tax on profit on debt jumped 194 percent to Rs14.56 billion during the first quarter of the current fiscal year as compared to Rs4.95 billion in the corresponding quarter of the last fiscal year.

The normal withholding tax rate on profit on debt paid by banking companies is 10 percent on amount of up to Rs0.5 million and 15 percent on amount exceeding Rs0.5 million. However, if individuals are not on the active taxpayers list the tax rates are applicable at 20 percent and 30 percent, respectively.

https://profit.pakistantoday.com.pk...cent-jump-in-tax-collection-in-first-quarter/