KARACHI: To expand tax net in Karachi, the Federal Board of Revenue (FBR) decided to divide Karachi in two zones. The move will help to streamline tax collection in the jurisdiction. FBR also assigned the powers of Broadening of Tax Base (BTB) to two commissioners of income tax.
Sources told media that Inland Revenue’s 37 areas are included in Regional Tax Office-II and Regional Tax Office-III. According to notification RTO-II comprises Saddar Town, Lyari Town, Jamshed Town, Liaquatabad, SITE, Baldia, Orangi, DHA, Clifton, Kemari Town, Clifton Cantt, Kemari Cantt and Manora Cantt.
While 13 areas are included in Regional Tax Office-III these are Korangi, Gulshan-e-Iqbal, Gulistan-e-Jauhar, Shah Faisal Town, Malir Town, Faisal Town, Malir Cantonment, Bin Qasim, Landhi
Sources told that FBR decided to take this step due to rising population of Karachi and expansion in trade activities in the jurisdiction. Prior to this only one commissioner was deputed for the assignment.
It is necessary to mention here that during Fiscal Year 2017-18 total number of taxpayers reached from 7,00,000 to 22,00,000 and this measures will help a lot to expand tax net which will also speed up the process of tax collection.