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" WITHHOLDING AGENTS, HELPING FBR     WITHHOLDING AGENTS, HELPING FBR IN TAX COLLECTION   By   M. Iqbal Patel, Chartered Accountant, Karachi   The Federal Board of Revenue (FBR) year book revealed that it has set an ambitious growth budgetary target for the fiscal year 2012-13 at Rs.2,381 bln which is 27% higher than out going year's collection of Rs.1, 883 bln. However, the figure of Rs.1,883 bln stated in the FBR Year Book is short by Rs.70 bln compared to the amount of Rs. 1,953 bln mentioned in the budget document. This challenging revenue collection target may prove unrealistic if the FBR fails to take measures which are necessary for its achievement.   The measures to be focused are improvement of tax system, withdrawal of the exemptions allowed under the Income Tax Ordinance, 2001 (Ordinance) which burden the poor taxpayers disproportionately and prompts tax evasion too. Further sustained tax policy measures are required to strengthen administration including a significant step-up in the FBR's enforcement activities to contain tax evasion, simplify the tax system and render it more equitable bringing the elite class within the documented regime.   Presently the FBR's main reliance in collection of direct taxes is on withholding tax regime. The contribution of withholding taxes (WHT) in the overall achievement 'of the budgetary target for financial year 2011-2012 remained at 59.8 % and voluntary tax payments was 29%. The field tax officers are not directly involved in direct tax collection of 85% of the gross revenue.   Moreover, more than 90% of the budget of Regional Tax Offices (RTO's) is met out of withholding taxes. If the Policy Board compares the contribution of the field tax officers in collection of rest of around…