Latest news with #LTOKarachi
Business Recorder
02-07-2025
- Business
- Business Recorder
PM hails increase in tax revenues
ISLAMABAD: Prime Minister Shehbaz Sharif on Wednesday delivered a forceful message to the country's top revenue officials, hailing a 42 percent increase in federal tax revenues while warning there would be zero tolerance for complacency in the fiscal year ahead. Chairing a high-stakes weekly review on the Federal Board of Revenue (FBR)'s reform and digitisation drive, Sharif celebrated what he called a 'decade-defining achievement' – an additional Rs 865 billion year-on-year jump in tax collections, driven by sweeping reforms and stricter enforcement. Officials said the increase marked an eightfold rise, pushing the federal revenue-to-GDP ratio to 11.3 per cent, a notable 1.5 percentage point leap from last year. LTO Karachi posts record Rs3.5trn revenue with 29pc growth 'The time for excuses is over,' Sharif told top bureaucrats and revenue chiefs. 'No department will be allowed to slack off. We are on a mission and failure is not an option.' The prime minister, who is personally overseeing implementation of the government's economic roadmap, demanded that all public institutions rally behind the FBR and treat taxpayers with dignity and respect. But he made clear that respect for citizens must be matched by relentless pursuit of those dodging taxes. Sharif unveiled an aggressive expansion of the FBR's digital net, ordering the mandatory digitisation of production lines in non-compliant industries and a nationwide rollout of the Track and Trace Digital Production System to bring untaxed sectors under scrutiny. The system, currently active in sugar, tobacco, and fertiliser sectors, will soon extend to cement and other key industries. He also called for an expanded point of sale (POS) system in the retail sector to stamp out under-the-table transactions and tighten the noose around tax evasion. 'Digitalisation is not optional, it is survival,' Sharif declared, urging officials to break the back of the informal economy. 'We will not let billions bleed from our economy because of outdated systems or vested interests.' The fiery session came just days after the passage of the 2025 federal budget, which the prime minister hailed as a cornerstone of his government's economic resurgence strategy. He congratulated the finance team and reaffirmed his commitment to turning Pakistan's fiscal landscape around. Copyright Business Recorder, 2025
Business Recorder
01-07-2025
- Business
- Business Recorder
LTO Karachi posts record Rs3.5trn revenue with 29pc growth
KARACHI: The Large Taxpayers Office (LTO) Karachi has achieved a historic milestone in revenue generation, collecting a record Rs3.5 trillion with 29% growth in the outgoing fiscal year. In an unprecedented single-day collection, LTO Karachi has collected Rs. 184.7 billion, establishing a new record, underscoring the office's operational excellence and enhanced tax collection capabilities. The LTO's exceptional performance continued throughout June 2025, with monthly collections reaching Rs. 449.05 billion - a remarkable 48% increase compared to the same period last year when collections stood at Rs. 302.83 billion. LTO Karachi recovers record-breaking Rs31bn outstanding taxes: FBR The most significant achievement came with LTO Karachi crossing the Rs. 3.256 trillion annual collections for fiscal year 2024-25, marking a robust 29% growth over the previous year's Rs. 2.515 trillion. This milestone represents one of the highest annual collection figures in the LTO's history. Chief Commissioner Zubair Bilal, who spearheaded these record-breaking achievements, played a pivotal role in reaching this monumental landmark for LTO Karachi. The revenue breakdown revealed income tax as the dominant contributor with Rs. 1.818 trillion annually, followed by sales tax collections of Rs. 1.301 trillion, and federal excise duties contributing Rs. 222.2 billion. Officials at LTO Karachi attributed these unprecedented achievements to their fantastic team, emphasising the collaborative effort and dedication that made these historic numbers possible. The synchronised performance across different tax streams reflects the office's enhanced organisational capacity and systematic approach to tax collection. Copyright Business Recorder, 2025
Business Recorder
28-06-2025
- Business
- Business Recorder
LTO Karachi recovers record-breaking Rs31bn outstanding taxes: FBR
ISLAMABAD: In an aggressive and highly effective move, the Large Taxpayers Office (LTO) Karachi has recovered a record-breaking Rs31 billion in outstanding taxes by freezing the bank accounts of major tax defaulters. This significant recovery is part of an intensified drive aimed at enhancing compliance among large taxpayers in Karachi, Pakistan's financial hub. According to officials at the Federal Board of Revenue (FBR), the LTO Karachi, which is responsible for handling high-volume and high-value taxpayers, executed the recovery actions over the past few days. The crackdown targeted various corporate entities, including a prominent State-Owned Enterprise (SOE), as well as private sector players across marine, housing, and energy sectors. Sources revealed that the LTO Karachi resorted to freezing bank accounts after repeated reluctance from companies to fulfill their tax obligations. One notable recovery stemmed from a company's failure to pay Rs14.5 billion in advance tax due on June 15. In accordance with Section 147 of the Income Tax Ordinance, 2001, the LTO Karachi assessed the company's turnover and determined the outstanding amount. After non-compliance, the office directed the company's banks to debit the required sum from its accounts. In another case, LTO Karachi recovered Rs12 billion from a different corporate entity using the same account attachment method. Additional recoveries were made from several other companies, all of which had failed to pay advance taxes based on their turnover, as required under section 147. Section 147 mandates quarterly advance tax payments on the following schedule: September quarter by September 25; December quarter by December 25; March quarter by March 25 and June quarter by June 15. Failure to comply with these deadlines empowers the FBR, through LTO Karachi, to take coercive measures, including account attachments. Moreover, officials noted that recoveries were also made under Section 137(2) of the Income Tax Ordinance. This provision allows the tax authority to serve a notice for any payable amount under an assessment order. Once the notice is served, the amount must be paid within 30 days, officials added. Copyright Business Recorder, 2025
