KARACHI: The Federal Board of Revenue (FBR) has sought the withholding tax performance details of income tax and sales tax from Large Tax Payers Units (LTUs) and Regional Tax Offices (RTOs) with a view to have a more focused monitoring of withholding of income tax and sales tax.
The withholding tax zones (WHT Zones) are advised to provide details regarding withholding agents, revenue generated, amount collected, details of withholding agents and total quantum of transactions where default identified and action taken thereof including imposition of penalties and field audit of WHT agents.
According to FBR, the growing importance of withholding tax and its contribution in total revenue is increasing with the passage of time. In an un-documented economy like Pakistan, imposition and effective monitoring of withholding tax is necessary not only to generate sizeable revenue but also to document withholding transactions.
Keeping in view the enormous potential of withholding tax regime, a more focused monitoring of Income Tax and Sales Tax withholding tax provisions and performance based reporting from the field formations is the need of the hour.
The Chief Commissioners are also requested to evaluate the performance of ‘Unit In charges’ working in WHT zones.
The Withholding Tax Performance Report of Income Tax and Sales Tax on the revised format for the month of January, 2015 in respect of each Unit Incharges of WHT Units of each LTUs and RTOs needs to be sent to FBR by February 20, 2015. Subsequently, monthly report should be sent to the Board by 10th of each month in respect of each Unit Incharges of WHT Units of each LTUs and RTOs.