The government has put business enterprises having annual turnover of over Rs 250 million under large tax payers category.[break]
The number of the large taxpayers was 280 in 2006/07 when they paid revenue to the tune of Rs 12.41 billion.
Revenue contributed by these tax payers touched Rs 39.95 billion with their number reaching 514 during the fiscal year 2010/11. The government collected Rs 22.55 billion as income tax, Rs 14.27 as VAT, Rs 2.76 billion as interest tax and Rs 224.25 million as rent tax from large tax payers during the year.
According to Large Taxpayers´ Office (LTO), the number of large taxpayers was 327, 366 and 414 in the year 2007/08, 2008/09 and 2009/10 respectively. Total revenue collection from the large taxpayers was Rs 17.2 billion, Rs 24.42 billion and Rs 32.87 billion in 2007/08, 2008/09 and 2009/10 respectively.
The number of large tax payers was 414 during the fiscal year 2009/10 with the revenue collection amounting Rs 32.87 billion from those firms.
“Though industrial activities have slackened over last five years, we have seen a consistent rise in the number of large taxpayers over the period as trading sector dealing with basic commodities showed better results compared to industrial sector,” a senior official at LTO told Republica on Monday.
Business firms involved in the trading of basic commodities such as foods, clothing, petroleum products as well as dealers of construction materials, gas, telecommunication service, electronic goods are emerging as large taxpayers.
With the rise of the number of large tax payers, their average individual contribution has also increased significantly over the period. Average yearly contribution of a large tax payer to national exchequer is Rs 77.72 million during the fiscal year 2010/11, well up compared to Rs 44.32 million during the fiscal year 2007/08.
“Though the number of private tax payers is going up, contribution of Public Enterprises (PEs) to the revenue as large tax payers is still significant,” said the source. Around 60 percent of the total large tax payers are capital-based,” said the source.
Major chunk of revenue is collected from large tax payers as income tax, VAT and interest tax. Contribution of total 36 PEs to the government revenue as dividend was Rs 4.8 billion during the fiscal year 2009/10.
According to the latest government data, 22 PEs reported profit whereas 14 PEs suffered loss with consolidated net profit touching Rs 10.55 billion during the year 2009/10.
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