Asim Ahmad, Chairman of the Federal Board of Revenue (FBR), has demanded an explanation from two Karachi Chief Commissioners for misleading tax authorities about their commitment to meeting allocated objectives, resulting in a revenue deficit in October.
On the condition of anonymity, a senior FBR official informed that the problem was highlighted during the Chief Commissioners meeting at the Large Tax Office (LTO) in Karachi. The FBR Chairman was interested in the operation of tax collection since the deficiency on the Inland Revenue side was caused by incorrect work filed by these Chief Commissioners for the month of October.
These Chief Commissioners agreed to collect the given amount by the end of October but failed to meet the deadline.
The Corporate Tax Office (CTO) Karachi and the Medium Tax Office (MTU) Karachi had pledged to meet the allocated objective and had guaranteed the FBR of this. The FBR Chairman, on the other hand, asked these Chief Commissioners to explain how the sum to be collected in October 2022 works.
“Why did these Chief Commissioners provide estimates that were not realistic, and what are the workings behind it,” sources quoted the FBR Chairman as saying.
Domestic sales tax collection has grown by 30-40%, but there was a shortage of Rs. 1 billion on the IRS side, authorities stated, while the shortfall on the customs side was considerably bigger.
The Chief Commissioners of Karachi’s Regional Tax Offices, Medium Tax Offices (MTOs), and Corporate Tax Offices delivered extensive presentations to the tax authorities. The conference agreed on a plan to reach the objective for the second quarter of the current fiscal year in order to make up for the Rs. 21 billion revenue deficit in October.