MULTAN: The Federal Board of Revenue (FBR), Regional Tax Office (RTO) has suffered revenue shortfall of Rs10.863 billion during the fiscal year 2018-19.
The Federal Board of Revenue has assigned Rs83 billion revenue collection task to the Regional Tax Office Multan throughout the economic year 2018-19. The Regional Tax Office has collected Rs72.137 billion during economic year 2018-19.The revenue collection of Regional Tax Office has witnesses decline due to multiple reasons and Regional Tax Office (RTO) of the Federal Board of Revenue (FBR) has faced serious issues in achieving the revenue collection target set for the monetary year 2018-19.
The Federal Board of Revenue had assigned the Income tax revenue collection target of Rs.43 billion to the Regional Tax Office for the whole financial year and Multan Regional Tax Office collected almost Rs.28 billion during whole the economic year 2018-19 .
The Regional Tax Office has collected almost Rs28 billion under the head of sales tax against the set target of Rs33 billion. The Regional Tax Office assigned Rs820 million in wake of federal excise duty (FED) and they have collected Rs570 million during the whole fiscal year 2018-19.
Sources told Customs Today that Regional Tax Office Multan has adopted special measures for the accomplishment the revenue collection task but due to fall in the import and consumption of High Speed clearance (HSD) decline the revenue collection of Sales taxes. Government has given exemption to salaried class up to the salary of Rs1.2 million has also reduced tax collection at the Regional Tax Office.
The change in tax slabs from Rs400,000 to Rs1200,000 was beneficial for the salaried class but it affects Rs800 million tax collection of the Regional Tax Office. Tax authorities of Multan were collecting almost one billion taxes from the salaried class.
Collection of allocated revenue target RTO Multan has suffered due to delay in the initiation of developmental budget from provincial and federal government revenue collection and mega developmental projects were dropped from budget due to financial crisis and tax authorities was deprived from collection who manages developmental projects in the Fiscal Year2018-19.
These mega projects were contributing handsome amount of tax revenue from contractors Withholding taxes has also declined in the Regional Tax Office Multan 2018-19. These mega projects were spending billions of rupees for their establishment and Regional Tax Office is collecting taxes under different heads from these projects.
