ISLAMABAD, June 7: Central Board of Revenue Chairman M. Abdullah Yousuf said on Wednesday the projected revenue collection target of Rs835 billion would be achieved easily, if the growth in economy maintained an upward momentum during the fiscal year 2006-07.

“The target is based on 14.2 per cent growth in the current fiscal year’s revised target of Rs704 billion, which means a revenue collection of Rs811 billion. The remaining Rs24 billion will be realized through the taxation measures taken in sales tax and income tax,” the CBR chairman said while responding to a question at a post-budget press conference here on Wednesday.

Mr Yousuf said that this was a realistic target keeping the current flow in economy. However, he said the ratio of tax-to-GDP in Pakistan was the lowest in the region. “We are considering various measures to enhance the current tax net by bringing all potential taxpayers into the net,” the CBR chairman asserted.

When asked why the CBR failed so far to take practical steps for enhancing the tax base, Mr Yousuf said it was only possible through the effective use of information technology. “We are making data base. We are collecting information from various sources and very soon we will launch our programme,” the CBR chairman said.

He said a further reduction in the general sales tax (GST) rate was possible only when the tax base in income tax was enhanced. “I have asked all the chambers to educate the people to come under the tax net,” he added.

The CBR chairman said delinquent taxpayers would be identified for bringing them into the tax net. “If we are facilitating the taxpayers then it is their responsibility to share some part of their income in the national kitty as tax,” he added.

Commenting on the taxation measures announced in the budget, Mr Yousuf said these would help in developing sectors like education, health, dairy industry, horticulture industry, etc.

He pointed out that for hospital and education sectors, equipment would be subject to a five per cent customs duty along with one per cent withholding tax.

In reply to a query, he said newsprint was exempted from customs duty. However, only one per cent withholding tax will be charged on import of newsprint. Mr Yousuf said that it was expected that the cost of property might increase with the levy of capital value tax. However, at the same time, he said, it would at least regulate prices of the property.