November 9, 2002	Saturday	Ramazan 3,1423

ISLAMABAD, Nov 8: The Central Board of Revenue has claimed to have achieved the revenue target of Rs124.8 billion set for the first four months (July-October) of the current financial year, said a senior official.

Official figures made available to Dawn showed that the revenue collection during the July-October period of the current financial year registered a growth of 12.73 per cent as it stood at Rs124.8 billion against Rs110.704 billion netted during the same period last year.

On monthly basis, the tax authorities collected Rs34.5 billion during October this year against the target of 34.8 billion set for the same month, a marginal decline of 0.86 per cent, while in comparison to the last year collection of Rs33.24 billion during the same month, it registered a growth of 3.79 per cent.

Further break-up of the revenue collection during October showed that the tax authorities collected Rs15 billion under the head of sales tax against Rs13.357 billion over the corresponding month of last year, showing an increase of 12.3 per cent.

Similarly, Rs4.7 billion was collected as customs duty during the same month this year against Rs4.05 billion during the last year month, showing an increase of 18 per cent.

The tax authorities collected Rs3.4 billion under the head of Central Excise Duty (CED) in October this year against Rs3.68 billion in the same month last year, showing a decline of 7.6 per cent.

And the revenue under the head of direct taxes stood at Rs11.4 billion during the same month this year against Rs12.15 billion of last year, showing a decline of 6.17 per cent.

A senior official in the CBR said that during the next week it was expected that the shortfall registered under the head of direct taxes would be achieved.

He said that decline in the revenue collection under the head of CED was occurred due to the fact that duty on around four items were converted into sales tax in the last budget. He further said that in the budget 2002-03, the government had also abolished excise duty on around 47 small items due to which duty collection under the same head registered a marginal decrease.

The CBR has set Rs110.5 billion tax revenue target for the second quarter (Oct-Dec) of the current financial year against Rs105 billion projected for the same period of last fiscal, showing an increase of 5.23 per cent. The tax authorities collected Rs97.07 billion during the second quarter last year.

The tax authorities would have to collect Rs75.7 billion during the two months — November and December — to achieve the target of second quarter.

Meanwhile, the tax authorities will give a detailed briefing on the performance of revenue collection during the first four months of the current financial to the visiting International Monetary Fund staff mission here on Saturday.

A senior official in the Central Board of Revenue told Dawn that the line-members would brief the Fund on tax-wise collection during the first four months viz-a-viz target for the year.

The IMF staff has shown satisfaction over the revenue collection target of Rs90.3 billion during the first quarter (July-Sept), said the official.

During the informal briefing to the Fund officials in the CBR here on Friday, the official said they were informed that the revenue collection during the first four months registered a growth under the head of sales tax and customs.

The revenue under the sales tax increased due to levy of 15 per cent General Sales Tax (GST) on vegetable ghee and cooking oil and other raw materials in the last budget of 2002-03. And the customs duty increased due to levy of import duty on petroleum products, said the official.

He said that on November 13, a detail briefing would be given to the senior IMF officials on the restructuring of the tax administration.

Elaborating the agenda of briefing, the official said the Fund would also be briefed on the revised sales tax refund rules and procedures implemented in September 2002.

They would also be briefed on customs administration reform plan and model income tax office for medium and small taxpayers in Lahore effective from October 2002, said the official.

The IMF would be also be given detail briefing on the human resource management, new recruitment and promotion policy, proposed rewards scheme for the competent employees, automation of the tax administration.

The review of the economy was part of a three-year SDR 1.03 billion (about $1.37 billion) Poverty Reduction and Growth Facility (PRGF) arrangement.

The tax authorities would also brief the IMF mission on the steps so far taken for the implementation of the reform agenda of the tax administration — medium taxpayer unit, Lahore, refund rules and working of CBR consultants.