A dedicated software launched across all district accounts offices in July last year has resulted in an impressive 50 per cent growth in collection of Sales Tax withheld by AG offices from the vendors of the government departments.
Federal Board of Revenue (FBR) Acting Chairman Dr Muhammad Irshad said this while addressing tax officials at the headquarters. “I must commend the lead role of both the current and ex-controller general of accounts for ensuring the successful launch of the system across all district accounts offices, which has now translated into over 50 per cent growth in collection of Sales Tax withheld by AG Offices from the vendors of the government departments, from July to December, year on year basis”, he added.
Dr Irshad asked the CGA team for continuous improvement of the system, so that operational issues reported at district accounts offices, were addressed. He also urged the accounts controller general, to extend the cover of the current system to bring government projects, both provincial and federal, under the current system.
The new measure, with the collaboration of the CGA Office, should further strengthen mechanism for enhancement of the state revenue. The FBR has plans to establish such relationship with the other withholding partners as well. Some headway has been made in this regard with the Excise and Taxation Department for the transfer of online data in respect of sections 231-B and 234.
In this connection, a meeting of all the provincial secretaries, Excise and Taxation is likely to take place in near future. Initial work has been finalized with the Sindh Excise and Taxation secretary.
The event was arranged by the Inland Revenue Operations Wing for acknowledgement and recognition of the cooperation extended by the controller general of accounts office and its MIS team for development and launch of the SAP-withholding (Sales) tax (Automated) System for deduction of 1/5th of withholding Sales Tax from vendors of the government departments whose bills are being processed through AG/AGPR offices.
