February 25, 2007	Sunday	Safar 7, 1428

ISLAMABAD, Feb 24: The Central Board of Revenue (CBR) has projected an annual growth of around 18 per cent in revenue realisation for reaching the proposed target of Rs4.3 trillion in the next 10 years from the current year’s projection of Rs835 billion.

This growth in revenue would be materialised only, if economy sustains a growth in the range of eight to 8.5 per cent each year, besides an average inflation of around seven per cent.

The rest of the growth in revenue would be from additional taxation measures or bringing more tax-evaders in the net.

Informed sources told Dawn that the CBR’s vision of taxation for the next 10 years was based only on presentation to the president.

It is purely an arithmetic calculation, with no solid base as no study had actually been conducted to work out potential of revenue generation in different sectors, the sources added.

The base for revenue increase was the growth in the GDP which means if the growth in the GDP remains below the projected target, the revenue would also fall.

Currently, the CBR generates more than 60 per cent of the total revenue from imports.

According to sources, the presentation identified a few areas which contribute lesser revenue to the kitty.

However, no study was being conducted to work out whether there was any potential in these sectors or whether it was only a guess-work while analysing the overall contribution of these sectors in the GDP.

For the last seven years, it was time and again being highlighted that the country had a narrow tax-base, but no practical efforts have, so far, been made, excluding a survey which produced no results, and it rather resulted into flight of capital.

CBR chairman M Abdullah Yousuf, speaking to CBR employees, asked for additional efforts, full commitment and dedication to achieve the desired results.

“We need to adopt a comprehensive strategy to achieve the targets envisioned in 10-year taxation plan,” he added.

He asked the tax officials to gear up efforts to achieve the goals of broadening tax-base and enhancing tax-to-GDP ratio.

The chairman said the president had assured full support to the CBR’s 10-year plan and tax administration reforms programme.