ISLAMABAD, Oct 8: The Central Board of Revenue (CBR) has set tax collection target of Rs116.8 billion for the second quarter (Oct-Dec) of the financial year 2001-2002.
The CBR had fixed Rs116.8 billion tax collection target for July-September period following downward revision in the budgetary target from Rs458.2 to Rs443.7 billion for the current fiscal, official sources told Dawn here on Monday.
The break-up for the second quarter, showed that CBR has projected Rs36.4 billion tax collection target for October of the current fiscal, Rs33.9 billion for November and Rs46.5 billion for December, 2001.
The tax authorities have to collect Rs41.7 billion under the head of the direct taxes in second quarter of the current fiscal, while they projected Rs46.5 billion under the head of sales tax.
Moreover, the tax authorities have projected Rs16.1 billion tax collection target under the head of customs in Oct-Dec period of the current fiscal and Rs12.5 billion under the head of central excise duty (CED).
According to provisional figures so far compiled by the CBR, the tax authorities have collected Rs73 billion against the target of Rs81 billion set for the first quarter, showing a visible shortfall of 9.8 per cent.
The provisional figures further showed that tax collection during September stood at Rs27 billion as against the target of Rs35 billion set for September, showing a shortfall of 22.85 per cent.
Official sources attributed the shortfall in September to prevailing uncertainty in the region in aftermath of September 11 terrorist attacks on US.
Sources were of the opinion that it might be possible that Finance Minister Shaukat Aziz may discuss further downward revision of the tax collection target with IMF officials due to negative growth in collection registered in the first quarter of current fiscal.
They observed that imports have declined in the wake of the prevailing tension due to which the foreign ships owners are charging high freight rates which resulted in reduction in value of import duty as well as sales tax at the import stage.
In first two months (July-Aug) of the current fiscal, three sources of revenue — income tax, sales tax, and CED — have already registered negative growth as against the corresponding period of last year. However, it was only the sales tax, which registered a positive growth of 6.2 per cent.
According to tax-men, the low tax collection during the first two months of the current fiscal was registered due to clearing of refunds/rebates and withholding of advance taxes of the last fiscal year.
They said that the backlog of huge sum of previous fiscal had been cleared that were negatively affecting the growth of tax collection during beginning of the current fiscal year.