KARACHI (July 31 2010): Revenue collected by the Large Taxpayers Unit (LTU) Karachi on account of profit on debts from banks and other securities under the section 151 of the Income Tax Ordinance (ITO) 2001, witnessed a phenomenal growth of 220 per cent during the fiscal year 2009-10 (FY10), Business Recorder learnt Friday.

According to official statistics, exclusively obtained by Business Recorder, the LTU Karachi collected Rs 682.884 million on account of profit on debts from financial institutions and other securities during the FY10 as compared to the collection of Rs 213.43 million made in the FY09.

It said the collection made from scrips' trading under section 233 A of the ITO 2001 stood at Rs 68.92 million, depicting some 285 per cent growth in comparison to the collection of Rs 17.91 million made in the FY09. Similarly, the department has accumulated Rs 1.161 billion during July 2009 to June 2010 period against dividend income, which was collected at the rate of 10 per cent under the section 150 of the ITO 2001, showing 197 per cent growth as compared to the collection of FY09.

The statistic further said the LTU Karachi has witnessed a 20 per cent growth on account of direct taxes, as Rs 114.91 billion was collected during the FY 10, which surpassed the collection of the FY09 by Rs 18.97 billion.

It said the department has collected Rs 7.41 billion from the sales of rice, cotton, edible oil, seed and other goods and services under the section 153 of the ITO 2001 during the last fiscal year, portraying 100 per cent growth as compared to the collection of Rs 3.703 billion made in the FY09.

Moreover, it said that around Rs 365 million have been collected under the heads of non resident royalty/fee for technical services, non resident contractors and other payments to the non resident companies, depicting 296 per cent growth as compared to the collection of Rs 92.16 million made in the FY09.

The phenomenal growth, witnessed in some heads are as follows: 80 per cent in rentals, 282 per cent in the commission on other income, 177 per cent in indenting commission in foreign exchange, 18 per cent in advance tax and 55 per cent in salaries.

In the same way a positive trend, in the revenue collection, was witnessed in several other accounts including: out of demand, arrears demand, current demand and minimum tax payments. Furthermore it said the collection made from returns has shown 41 per cent decline during the FY10. Official sources said, although the budgetary target of the LTU Karachi was a formidable achievement, it was made possible only because of an effective monitoring.

They also said the department has issued Rs 22.54 billion refunds during the FY10, depicting 97 per cent growth as compared to Rs 11.466 billion issued in the FY09. They further said the LTU Karachi has collected Rs 101.64 billion in the FY10 as compared to Rs 73.599 billion in the FY09, under the head of sales tax, showing 38 per cent growth. Similarly, the collection made through federal excise has increased from Rs 39.339 billion in FY09 to Rs 43.439 billion in the FY10, which also shows a growth of 10.4 per cent. In addition, the figure of sales tax refund has indicated an increase of 146 per cent, as Rs 13.27 billion was issued in the FY10 as compared to Rs 5.382 billion issued in the last fiscal year.

Copyright Business Recorder, 2010