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ISLAMABAD: The Federal Board of Revenue will have to raise Rs430 billion in the last two months (May-June) to achieve the downward revised revenue target of Rs1,588 billion.
A senior tax official told Dawn on Friday that FBR has to realise additional revenue of Rs130 billion over the revenue collection made during the same period last year. The FBR netted a revenue of Rs300 billion in May-June 2009-10, when the economy growth rate was over three and a half per cent.This year, as projected, the economic growth will fall to 2.4 per cent which could make the task more difficult for tax officials to raise the revenue for the kitty in reaching the good total.
The revenue collection in the first 10 months has reached Rs1,156 billion in 2010-11, up over five per cent from Rs1,092 billion collected during the year 2009-10.
The dismal revenue collection performance of the tax machinery would make the job of the government difficult to curtail the rising budget deficit.
As a result, according to the official, the FBR has issued notices to big corporations to recover the stuck-up arrears in a bid to reach a conservative total.
An amount of Rs10 billion was recovered from the Pakistan State Oil in April, which was outstanding against the state-owned company as tax liabilities.
“We have identified such more big taxpayers to recover the withheld taxes from them”, the official said.
Recently, FBR chairman Salman Siddique asked the tax officials to clear around Rs150 billion revenue that was stuck up in litigation. This was the only option for the FBR to reach the target, the official said.
According to the tax official, the FBR raised Rs135 billion in the month of April as against the target of Rs140 billion set for the month, leaving a shortfall of Rs5 billion. The shortfall in revenue occurred despite the revenue measures taken during the month to raise additional revenue.
The government has projected Rs1,992 billion revenue target for the year 2011-12. However, this target would be finalised following the final revenue collection figures by end June 2011.
Pakistani and IMF officials will meet in Dubai to finalise the budgetary proposals including the revenue collection target for the next year. “We will finalise the revenue target and other measures in the upcoming IMF review meeting, the official said.
The tax target was revised from Rs1604 billion to Rs1588 billion despite mid-term revenue measures including withdrawal of exemptions on agriculture products.
