ISLAMABAD, June 30: Federal Finance Minister Shaukat Aziz on Wednesday announced that the Central Board of Revenue (CBR) has achieved its annual revenue collection target of Rs510.6 billion set for the 2003-04
, registering an increase of 10.9 per cent over 2002-03.
Addressing at a joint news conference with Federal Minister for Information and Broadcasting, Sheikh Rashid Ahmed, the finance minister said that it was expected that revenue would increase further in the next few days when final figures for the year were firmed up. Chief Minister of Sindh, Arbab Ghulam Rahim, Chairman, CBR, Abdullah Yusuf were also present on the occasion.
Mr Aziz said that Prime Minister Ch. Shujaat Hussain had signed the summary of the Finance Bill 2004-05 and President General Pervez Musharraf had also given approval to the bill.
He elaborated that all legal process had been completed and the new financial year of 2004-05 would begin from July 1. The budget passed by the Assembly will also be implemented from the same date.
Mr Aziz said admitted that the target for the financial year 2003-04 was ambitious but due to growth in the economic activities, the revenue target was realized. To a question, he said that the revenue target of Rs580 billion for the year 2004-05 would be achieved easily if peace was not disturbed and the growth in economy remained 6.6 per cent.
Replying to a question, he said that a single day strike in Karachi resulted into a loss of Rs1 to 1.5 billion in revenue collection to the national kitty. He said that due to strikes in Karachi in the month of May 2004, the revenue collection remained short of target.
Elaborating tax wise break up, the minister said that the CBR collected Rs159.1bn under the head of direct taxes against the upward revised target of Rs161.5 billion for the same year, registering a decrease of 1.48 per cent.
Under the sales tax an amount of Rs218 was realized as against the downward revised target of Rs218 billion for the same period. The collection under Central Excise Duty stood at Rs44.2bn as against the downward revised target Rs43.5 billion, an increase of 1.6 per cent against the target.
The revenue collection under the head of Customs stood at Rs89.3 billion during the period under review as against the upward revised target of Rs86.6 billion, an increase of 3.11 per cent against the target.
The minister said due to enhancement of minimum threshold for sales tax from Rs0.5 million to Rs5 million, around 42,000 small traders and businessmen would be de-registered from the sales tax net.
This step of the government, he said, would also save the business community from the harassment of the tax officials. Government would only charge 0.5 per cent as income tax from them, he said.
Replying to a question, he said that Pakistan during the first 11 months of the outgoing financial year has succeeded in attracting $903 million which is 21 per cent higher than the last year. Answering another question, he expressed the hope that Foreign Direct Investment (FDI) target of $1 billion would be achieved.
