ISLAMABAD, Nov 24: The government has further revised down the annual tax collection target by 3.18 per cent or by Rs13.7 billion to Rs430 billion from Rs443.7 billion, an official source in the finance ministry told Dawn on Saturday.

The government had earlier revised downward the tax collection target from the budgetary target of Rs457.7 billion to Rs443.7 billion, a decrease of 3.15 per cent or Rs14 billion.

According to the source, if the situation deteriorated beyond the present assessment, the target may be further revised.

“We have lost around Rs4.04 billion in revenue collection in September, as revenue collection stood at Rs30.69 billion against the target of Rs35 billion set for the month, while the revenue declined by 10.06 per cent to Rs33.04 billion against the target of Rs36.4 billion set for October.

When contacted, the chairman, Central Board of Revenue (CBR) has confirmed the downward revision. He attributed the revision to the prevailing situation in the region.

Justifying the downward revision, the chairman said that due to massive decrease in the country’s dutiable imports coupled with recession in the market due to the prevailing tension in the region, it would not be possible for the CBR to meet the projected revised target of Rs443.7 billion for the current fiscal.

“I hope, if the situation returns to normal in next couple of months, we would be able the touch the figures of around Rs430 billion but in case the situation remained unchanged, the target may further be reduced,” he remarked.

Due to the terrorist attacks on US and subsequent US-led attacks on Afghanistan, Mr Riaz said, yet another shortfall of around Rs4 billion was expected in the revenue collection in November.

The chairman said that one major impact of the current situation had been observed in shape of enormously declined customs clearance as compared to the last year. Similarly, the sales tax, withholding tax, which were also collected at import stage were also hit.

“Sales tax, withholding tax and customs duty have been declined by 14 per cent due to the recent development in the region as well as due to decline in the fuel prices in the international market.”

The CBR has projected Rs33.9 billion revenue target for November, which seemed very difficult for the tax authorities to be achieved.