INP-WealthPk

Withholding agent’s role in tax collection highlighted

August 29, 2022

Director General of Khyber Pakhtunkhwa Revenue Authority (KPRA) Captain (Retd) Shahbaz Tahir Nadeem said the role of withholding agents in tax collection is crucial, as a trust is attached to them being government officials, reports WealthPK.

He said this while addressing a workshop in Shangla district to build the capacity of public sector withholding agents and increase tax compliance. USAID-funded Khyber Pakhtunkhwa Revenue Mobilization Activity assisted the KPRA in holding the workshop.

The participants included officials from the district administration, tehsil municipal administration, educational boards, government hospitals, local government, and district accounts located in Shangla.

In his welcome address, Shahbaz Tahir said, “We can’t work alone; we need your assistance in tax administration and collecting revenue for the government to be spent on public uplift schemes.”

He also spoke about the difference between the sales tax on services and sales tax on goods. Withholding was not a tax in itself rather it was a mechanism for tax collection which was practiced in around 168 countries as a good source of revenue collection.

“Our team is available for your assistance and help,’’ he said, expressing thanks to USAID-KPRM for assisting the KPRA in organizing workshops and other activities.

KPRA Additional Collector Mardan and Malakand Mussarat Zaman also thanked the participants for attending the workshop and assured them of complete support.

In his presentation, Deputy Collector Mardan and Malakand Abdul Wahab briefed the participants on the KP Sales Tax on Services Withholding Regulations 2020 and explained how to calculate and withhold sales tax from the service providers and how to submit their sales tax returns.

In his speech, USAID-KPRM Public Outreach Specialist Naveed Yousafzai said they will continue to support the KPRA in tax acculturation and awareness of public and withholding agents. More such awareness and training workshops will be held for withholding agents in Galiyat, Dera Ismail Khan and other districts of Khyber Pakhtunkhwa, he added.

Credit: Independent News Pakistan-WealthPak