LTO Karachi’s collection grows 53% in five months

The Large Taxpayers Office (LTO), Karachi has registered a sharp increase of 53 per cent during the first five months (July-November) of the fiscal year 2021/22, owing to a significant rise in the collection of both direct and indirect taxes.

According to the official numbers made available to BOL News, the net collection of the LTO Karachi was Rs610 billion in the first five months of the current fiscal year, compared with Rs399.71 billion in the corresponding period of the last fiscal year.

The tax office also surpassed the five-month collection target of Rs568.83 billion by Rs41 billion.

The LTO Karachi is the major revenue collection arm of the Federal Board of Revenue (FBR). The tax office has the jurisdiction over companies having high turnover.

The collection of direct taxes posted an increase of 53 per cent to Rs198 billion during the first five months of the current fiscal year, compared with Rs129.5 billion in the corresponding period of the last fiscal year.

The LTO Karachi also issued refunds worth Rs4.18 billion under direct taxes.

Officials at the LTO Karachi said that improved earnings of corporate entities helped the tax office collect increased revenue from profits. The collection of sales tax grew 55 per cent to Rs389 billion during July-November 2021/22, compared with Rs250 billion in the same period of the last fiscal year.

The collection of sales tax (domestic) registered an increase of 9 per cent to Rs118 billion, compared with Rs109 billion, whereas the collection of sales tax (imports) grew 88 per cent to Rs287 billion during the first five months of the current fiscal year, compared with Rs152 billion in the same months of the last fiscal year. The tax office issued Rs16 billion under sales tax refunds.

The tax office also collected Rs23.45 billion as the federal excise duty (FED), which is 18 per cent higher, compared with Rs19.88 billion in the corresponding period of the last fiscal year.  

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