LAHORE: The Punjab Excise and Taxation Department has failed to achieve its revenue target during the first four months of the fiscal year 2014-15, Customs Today learnt on Saturday.
Revenue target of the department is Rs 7 billion for this year, while in the first four months the Excise and Taxation Department collected Rs 1.75 billion in the four months.
The received amount is much less than the target for first quarter.
According to Imran Aslam, Director Excise and Taxation Motor Branch, a large decline in revenue collection is due to decrease in registration of new vehicles. The registration of new vehicles has fallen to 50 percent during this year due to heavy duties and taxes on motor cars, he said. He added that another reason for the decline in collection of revenue target is imposition of heavy fees and withholding tax on transfer of vehicles. Now the owners of the used cars are reluctant to transfer their vehicles’ ownership, he added.
The buyers of the cars are mostly non-filer and non-income taxpayers so they feel hesitated in registering their vehicles in income taxpayers list, he added.
“People are not submitting their income tax returns, which is affecting the set target of the Excise Department. Such people do not transfer ownership of the vehicles,” he added.
The department was receiving almost Rs 1 billion every year from 1000CC vehicles but after the change in policy, the department had been deprived of this huge capital.
Director Excise and Taxation Imran Aslam said, “We are seriously working to achieve our target. The department has formed special teams for road checking. These teams are checking the vehicles on roads by establishing checkpoints on different points.”
