ISLAMABAD, July 10: Finance Minister Shaukat Aziz on Thursday claimed that the tax authorities had collected Rs460.2 billion during the fiscal year 2002-03 against the target of Rs458.9 billion, registering an increase of Rs1.3 billion.
Addressing a press conference, he also claimed that the collection would touch the figures of Rs460.5 billion in the next few days when revenue collection was finalized.
According to figures released by the minister on the occasion, the tax authorities collected Rs151.3 billion under the head of direct taxes during the year 2002-03 against the target of Rs148.4 billion, an increase of Rs2.9 billion against the target.
The collection from customs duty stood at Rs69.1 billion against the target of Rs59bn set for the year, showing an increase of Rs10.1bn over the target.
Revenue collection under the head of sales tax declined by Rs9.2 billion to Rs194.8bn during the year under review against the target of Rs204 billion.
Similarly, the central excise duty (CED) stood at Rs45 billion during the year 2002-03 against the target of Rs47.5 billion, a decline of Rs2.5 billion.
The minister, however, did not explain the reasons for shortfall registered in the collection of sales tax and CED in 2002-03.
Regarding tax evasion, the minister said the government would increase raids on suspected business houses to apprehend tax evaders and enhance collection.
The minister said the tax officials at Karachi had detected a case of under-invoicing of paper imports in which about Rs200m of tax was evaded by the importer, which had now been recovered.
Mr. Aziz said similar exercises would be carried out on a large scale by the tax officials to curb the corruption rampant in the tax administration.
The minister said during the last two years disciplinary action was taken against 41 officers some of them were sent on compulsory retirement, while around 42 officers resigned from services for different reasons.
Elaborating the reforms of tax administration, the minister said five more medium taxpayers units (MTUs) would be set up at Rawalpindi, Faisalabad, Peshawar, Quetta and Gujranwala by December. He said one Large Taxpayers Unit (LTU) would be set up at Lahore next year.
He said in August the tax authorities would establish a model sales tax unit at Karachi by merging the East and West collectorate of sales tax.
The minister said the customs reforms would not only save the time of taxpayers through quick clearance of goods but it would also result into saving of taxpayers money.
Answering a question about increase in cement price despite relief in duty announced in the budget for cement industry the minister defended the hike saying the price had increased due to massive demand.