ISLAMABAD: A monitoring cell has been established at the Federal Board of Revenue (FBR) under the supervision of Director General Haroon M Tareen to keep an eye on the collection of Withholding Tax (WHT).
The cell will prepare report on a daily basis regarding the collection of WHT, besides contacting with WHT agents. Sources said that the monitoring cell has been set up following the negligence showed by the agents in revenue collection, adding that it will also highlight the errors in the system.
The sources informed that the FBR is facing a shortfall of Rs 2.25 billion in WHT collected on banking transactions during first four months (July-October) of current fiscal year 2016-17, adding that new valuation rates for property imposed a negative impact on it.
The FBR recorded an increase of over 36 percent in tax collection on sale/purchase of properties, but a decline was observed in use of banking channels for transactions of payments against properties causing a shortfall in WHT collection, the sources said.
They highlighted that real estate sector sought exemptions in wake of income tax on the amount used for sale/purchase of plots in tax returns of coming years and inquiry about sources of income.
The sources revealed that the FBR had designed a plan B to tackle the situation under which real estate sector had been given some exemptions, adding that the suggestion were sent to the government for getting approval from the Parliament. But, the government could not discuss the issue in the Parliament due to recent political unrest in Islamabad.
