introduced to boost revenue, promote investment, and facilitate taxpayers for improved voluntary compliance. Direct Taxes: The gross and net collection of direct taxes during the 1st quarter of CFY has been Rs. 170.7 billion and Rs.163 billion, against Rs. 148.2 billion and Rs. 138.8 billion respectively in the comparable period of PFY, indicating an increase of 15.2% in gross and 17.5% increase in net term (Table 4). Table 4: Direct Taxes Collection July-September 2013-14 (Rs. Billion) July-September Growth Heads (%) 2013-14 2012-13 Gross 170.7 148.2 15.2 Refund 7.6 9.4 -18.9 Net 163.1 138.8 17.5 Components of Income and Corporate Taxes: Of three major components of direct taxes namely; collection on demand (CoD), voluntary payments (VP) and withholding taxes (WHT), 67.5% of gross income tax is contributed by the WHT, followed by VP having 26.7% and CoD 5.2%. In general, the performance of these sources of revenue has been almost consistent with the overall state of the economy. The WHT has registered a growth of 38.9% while CoD has yielded a negative growth of 4%. The better performance of WHT is due to establishment of RWUs (Regional Withholding Units) for operational reasons. Resultantly, a separate and independent monitoring mechanism has been developed which was previously been assigned to enforcement and collection division. The collection from CoD depends on the departmental efforts and the lesser collection invites the concerned quarters to review the causes of decline in collection which was mainly for stalled audit activities due to The court’s intervention. voluntary payment has registered a negative growth of 6.8% during the 1st quarter of CFY. On the other hand, the other component of voluntary compliance is payment with return, where negative growth has been recorded mainly due to extension in return filing date till December 2015. Similarly, other direct taxes have also registered negative growth during the period under review. A detailed analysis of three components is presented below. The collection on account of demand creation has decreased during Collection on Demand (CoD): the 1st quarter by 4% during CFY. Of the two components of CoD, the collection under arrear
introduced to boost revenue, promote investment, and facilitate taxpayers for improved voluntary compliance. Direct Taxes: The gross and net collection of direct taxes during the 1st quarter of CFY has been Rs. 170.7 billion and Rs.163 billion, against Rs. 148.2 billion and Rs. 138.8 billion respectively in the comparable period of PFY, indicating an increase of 15.2% in gross and 17.5% increase in net term (Table 4). Table 4: Direct Taxes Collection July-September 2013-14 (Rs. Billion) Heads July-September Growth (%) 2013-14 2012-13 Gross 170.7 148.2 15.2 Refund 7.6 9.4 -18.9 Net 163.1 138.8 17.5 Components of Income and Corporate Taxes: Of three major components of direct taxes namely; collection on demand (CoD), voluntary payments (VP) and withholding taxes (WHT), 67.5% of gross income tax is contributed by the WHT, followed by VP having 26.7% and CoD 5.2%. In general, the performance of these sources of revenue has been almost consistent with the overall state of the economy. The WHT has registered a growth of 38.9% while CoD has yielded a negative growth of 4%. The better performance of WHT is due to establishment of RWUs (Regional Withholding Units) for operational reasons. Resultantly, a separate and independent monitoring mechanism has been developed which was previously been assigned to enforcement and collection division. The collection from CoD depends on the departmental efforts and the lesser collection invites the concerned quarters to review the causes of decline in collection which was mainly for stalled audit activities due to court’s intervention. The voluntary payment has registered a negative growth of 6.8% during the 1st quarter of CFY. On the other hand, the other component of voluntary compliance is payment with return, where negative growth has been recorded mainly due to extension in return filing date till December 2015. Similarly, other direct taxes have also registered negative growth during the period under review. A detailed analysis of three components is presented below. Collection on Demand (CoD): The collection on account of demand creation has decreased during the 1st quarter by 4% during CFY. Of the two components of CoD, the collection under arrear
201312201612364336July-Sept2013-14.docx