LAHORE: Deputy Commissioner Withholding Zone RTO-II Khawar Siddique has said that documented economy system is vital to empower national economy. Documented economy playing a key role for the awareness of taxpayers to boost revenue collection and this problem must be solved on priority basis.
During an exclusive interview with Customs Today, Khawar Siddique said that due to the strict laws for tax collection by the government, and by their proactive implementation and execution, tax collection has increase. Under the laws Inland Revenue officers can seal the business premises, conduct raids, seize the movable property and freeze the bank accounts of any tax defaulter.
Deputy Commissioner Khawar Siddique said that he is currently monitoring withholding of income tax on exports, textile sector and salaries of employees from different organisations/departments. As for as the monitoring of withholding of sales tax is concerned, cases of auto parts, plastic and tanneries etc also fall in the jurisdiction of RTO-II.
Talking about the jurisdiction he said that he collects taxes from more than 3000 business units, including 527 companies, 229 association of persons (AOPs) and 2310 individuals.
Deputy Commissioner said he collect taxes from Punjab government, Nestle, Sui Northern Gas Pipelines Limited (SNGPL), Coca Cola beverages, Muslim Commercial Bank (MCB), Allied Bank Limited (ABL), Bank of Punjab (BOP) and, CA Textile, Spin Cot, Shikhupura Textile and others.
Khawar told that he monitors withholding of tax and its deposit in government exchequer on salaries of employees through out the month also monitors the previous record and if any discrepancy is found then he takes action and collect taxes with the panelty.
Further said that for the collection of taxes he monitor salaries, purchases (taxpyers purchas what and from where) and rent payments under the section 155 etc of income tax ordinance 2001.
He also told that there are businessmen who claim as 100% exporters and claim exemption from audit under section 161 of Income Tax Ordinance 2001 , he conduct transparent audit and if any discrepency is found then he collect taxes with penalty.
Khawar Siddique told that the compliance rate from the withholding agents was not very good but after the strengthening of laws by the government tax collection has become easy. Adding more that tax collection from salaries under section 149 of the Income Tax Ordinance, 2001 has a rise of 20 percent as compared to previous years.
He told Customs Today that in the month of December he collected Rs1656 million under the head of salaries and average collection from exports is Rs175 million per month, adding more Khawar told that average collection under the head of withholding tax on salaries is Rs160 million from Lahore based employees whereas average collection of tax under section 149 of the income tax ordinance, 2001 is Rs1250 million per month.
Khawar Siddiqui hailed the efforts of RTO II under the supervision of Khawaja Adnan Zaheer and said the RTO-II is achieving the monthly and quarterly targets every year just because of Chief Commissioner Khawaja Adnan’s guidance and command. He appreciated the appointment of professional officer Dr Irshad as chairman Federal Board of Revenue (FBR) also a very good step by the government of Pakistan.
He said “FBR is the earning hand of the state and it must be strengthened by giving it more powers and facilities.” Khawar Siddique said although he supports tax friendly culture but he also believes that tax evasion is a crime and it should be dealt with an iron fist.
