ISLAMABAD, Sept 19: Federal Finance Minister, Shaukat Aziz on Thursday said that the tax collection target of Rs460 billion set for the current financial year would be achieved easily.

He was presiding over the second meeting of the Cabinet Committee for federal revenues here on Thursday, said an official announcement.

He expressed satisfaction over the performance of CBR for achieving tax targets in the first two months, which stood at Rs53.2 billion registering an increase of 14.4 per cent over the corresponding periods of the last year.

The meeting was told that during the first two months, CBR paid around Rs16.4 billion refunds of sales tax and duty drawback to exporters, the total collection of CBR in these two months came to Rs69.6 billion.

The meeting noted with satisfaction that the revenue collection efforts of CBR were likely to achieve the annual target of Rs460.6 billion.

The break-up of the target for the financial year 2002-03 were direct tax Rs148.4 billion, sales tax Rs205.7 billion, custom duties Rs56.6 billion and central excise duty Rs50 billion.

The meeting was informed that the measures taken at the time of the budget this year would result with net revenue effect of Rs4.11 billion and the fact that there has been a short term reform cost as the LTU was still at its infancy.

Keeping in view the current trend of tax collection, it is expected that CBR would be able to achieve the target of Rs90 billion for the first quarter.

The committee was given an exhaustive briefing by Mantyn Kebbell, Director Maxwell Stamp, UK on tax administration reform.

The meeting was attended by ministers of commerce and privatization, secretary general, finance, deputy chairman, Planning Commission, chairman, CBR, Secretary Establishment Division and senior officials of the Ministry of Finance and CBR.