RTO eyes weaving, furniture sectors for levy recovery
The Regional Levy Office (RTO) Faisalabad has launched a strict enforcement on the weaving and furniture sectors ahead of the new financial year in
An illustrative image related to: RTO eyes weaving, furniture sectors for levy recovery, highlighting key aspects of the story. | Image source: The Express Tribune
RTO eyes weaving, furniture sectors for levy recovery
The Regional Levy Office (RTO) Faisalabad has launched a strict enforcement on the weaving and furniture sectors ahead of the new financial year in an effort to meet annual income targets, as representatives say both sectors are paying negligible income and advance taxes despite their large industry volumes.
Talking to reporters, Chief Commissioner RTO Dr Shah Khan stated the Faisalabad zone has more than 4,000 weaving units, which form the backbone of the local market and represent a strong value-further stated industrial general facilities. However, the sector paid only Rs130 million in taxes this year, compared with Rs140 million last year, indicating a drop in levy contributions.
He stated the RTO also reviewed levy declarations submitted by businesses in the furniture sector, particularly those based in Chiniot, which is widely known for its large furniture industry. According to Dr Shah Khan, the declarations submitted by many businesses were significantly underreported and inconsistent with their actual industry scale and transaction volumes.
"In many cases, businesses declared annual incomes of Rs700,000 to Rs1.5 million, resulting in levy payments of only Rs50,000 to Rs150,000," he stated, adding that most taxpayers simply documented taxes already deducted from bills as their final liability, while some even asserted certain payments as refunds.
Dr Shah Khan stated the RTO initiated engagement with furniture manufacturers and began discussions with several units.
Following these dialogue, members of the sector's association approached the levy representatives and expressed willingness to cooperate.
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