ISLAMABAD, July 18: The income tax collection has recorded a growth of 47 per cent to Rs330 billion during the fiscal year 2006-07 as against Rs224.988 billion over the same period last year.
Chairing the 14th National Tax Conference here on Wednesday, chairman, Federal Board of Revenue (FBR), M Abdullah Yousuf, said the number of taxpayers filing the tax returns up to June 2007 had reached 1.8 million.
He said the FBR had already taken some far-reaching measures to further expand the tax base. Sectoral studies are being conducted for detecting leakages and for tax gap analysis.
Special attention is being paid to those potential areas which are still out of the tax net.
The chairman pointed out that the present number of taxpayers was in no way near to what it should have been.
“We still have a huge gap. We have to first evaluate and analyse and then strategise to get the desired results,” he emphasised.
“We may expect some tangible outcomes, if target groups are correctly and genuinely identified.”
He said it was actually direct tax collection through which we managed to make up shortfall faced in other taxes.
He said shortfall in collection of customs duties and sales tax was mainly due to reduction in dutiable imports.
Member, Direct Taxes, Salman Nabi, informed that total advance tax collection during the year was Rs117 billion as compared to Rs63 billion in the year 2005-06, showing a growth of 86 per cent.
On payment of refunds position, Mr. M. Abdullah Yusuf remarked that the balance on this account must be totally negligible.
He directed the commissioners to address this issue through policy changes. He also advised them to send a regular feedback in this regard.
Whereas, tax collection achieved with the tax returns was Rs48 billion, as compared to Rs24 billion in the preceding year, indicating an increase of 100 per cent. However, collection out of demand and refunds issued during 2006-07 were less as compared to those of 2005-06.
Mr Yousuf reminded the tax managers that “we can do well, if economy does well”.
Directors-general of large taxpayers unit (LTUs) and regional tax offices (RTOs), in their presentations, highlighted the performance of their departments on account of revenue collection achievements in last financial year, strategy for achieving current year’s targets, liquidation of arrears, broadening of tax base disposal of pending tax /appeals, monitoring of WHT progress on data entry, progress of were on reforms units etc.
On liquidation of litigation pendency, the chairman advised the member (legal) to aggressively pursue the cases pending at Supreme Court, High Court and tribunal level.
