LAHORE: The revenue collections by the Large Taxpayers Unit (LTU) has increased due to change in rates in cement sector . Commercial banks and cement sector are key contributors of the Large Taxpayers Unit and national economy. LTU-Zone-I always showed outstanding performance and exceeded targets every year.
These views were expressed by Additional Commissioner Audit, Zone-I, Large Taxpayers Unit Jibran Masroor during an exclusive interview with Customs Today. He said that during the first quarter of the current financial year, the Zone-I has collected 56 percent more revenues as compared to the collections of the previous year.
Answering a question, Jibran Masroor said: “Due to the change in rate from five prevent to one rupees per kilogram for cement sector, LTU revenue collection has exceeded from Rs 400 million to Rs 1.2 billion from July 2016.”
Talking about the jurisdictions of LTU, Jibran said that zone-I deals with the 131 enterprises for tax collections. The major sectors are banks, cement, textile, hotel and restaurants, electronic manufacturing and others. He said that LTU collected taxes from five educational institutions that include Beacon House, Lahore Grammar School, Punjab Group of Colleges and others.
Additional commissioner said that banks are the major source of tax collection and at least ten banks and insurance companies falls under the jurisdiction of LTU which includes Muslim Commercial Bank (MCB), Allied Bank Limited (ABL), Bank of Punjab (BOP), Soneri Bank and others from where LTU collect taxes and generate revenue.
Talking about the procedure Jabran told Customs Today that banks earns more profits and are paying taxes. He said that LTU collect taxes which are deducted by the banks as withholding tax (WHT) and other deductions on cash withdrawals. He said that LTU takes this procedure according to Section 230-A of Income Tax Ordinance.
Answering a question he said that seven cement companies came under their jurisdiction where LTU collect taxes like Maple Leaf, DG Khan Cement, Pioneer Cement, Ghareeb Wall Cement, Flying Cement and Kohat/Dando Cement.
He said Large Taxpayers Unit also collect taxes from fifteen electronic manufacturing companies which includes Orient, Haier and others, 23 chemicals/ fertilizers/ pesticides, seven engineering manufacturing, five leather manufacturing like Bata, Huish Pappies, Footwear, Borjan and others, 15 textile companies, five educational institutions, 10 services, four hotels and restaurants and 31 miscellaneous like pharmaceutical and plastic companies are also among those which deals with LTU.
Talking about the first quarter collection he said that Large Taxpayers Unit (LTU) has collected Rs5470 million more from July to September 2016 as compared to last year. In Financial Year 2015-16 LTU, Zone-I collected Rs9809 million in the Year 2016-16 while his department collects Rs15279 million during the year 2016-17 in the first quarter.
In details, Zone-I has collected Rs1767 million during the month of July of ongoing year as compared to Rs1181 million collected during previous year, Rs9581 million were collected in August 2016.
Jibran Mansoor said that Zone-I check the tax collection status that banks are collecting specific taxes under the law because the tax rate is different from fillers and non fillers, he appoint officers for the monitoring of manufacturing sector to monitor productions of specific unit under the section 40B of income tax ordinance.
Jibran Masroor said that after the withdrawal of sales taxes on pesticides, five to six billion tax collection fall due to zero tax collection from the pesticides sector.
Additional commissioner told Customs Today that he conducts one or two monthly meetings with the officers to adjust the monthly targets. Strong coordination with the seniors and junior is also strength of Large Taxpayers Unit (LTU). Jibran Masroor specifically lauds performance of the senior and junior officers of Zone-I on their efforts for tax collections and strong coordination.
