LAHORE – Federal Board of Revenue (FBR) has collected Rs 764.8 billion out of revised tax collection target of Rs 1,604 billion during the first seven-month of the current fiscal year, registers an increase of 10 percent when compared with the previous year.
This was disclosed by the FBR Member Inland Revenue Khawar Khurshed Butt, who was addressing media personnel at Regional Tax Office Lahore. He said the country was passing through a fiscal emergency and the FBR had to work on a war footing for achieving the tax collection target.
However, he underlined that despite several worrisome factors, including low foreign inflows, weak fiscal position and devastating floods, the FBR would try its level best to achieve revised tax collection target of Rs 1,604 billion.
He pointed out that the last five months of fiscal year were most crucial for tax collection. The FBR still has a target of Rs 827 billion, which would be achieved by June 30. He said that the FBR had started consultative management at different levels to streamline the tax collection mechanism.
Speaking on the broadening of taxbase, he pointed out that special measures were being taken to increase the tax net. The board had appointed Shahid Hussain Asad as Director General Broadening of taxbase. He said there were two major factors, including small taxbase and under reporting by existing taxpayers, that a significant effect on tax collection.
It is a misperception that if the taxbase was increased, the tax to GDP ratio would improve because under reporting will remain one of the biggest challenges, he added. He said that FBR was trying to cross reference data with National Database and Registration Authority (NADRA) to probe incidents of tax evasion. However, he pointed out this practice might not translate in huge revenue collection.
Responding to a query, Inland Revenue member said there were several integrity related challenges within the FBR machinery, but the Board was trying to encourage upright officials. He said business community had genuine grievance about the delay in General Sales Tax Refunds issuance. However, the FBR had directed all chief commissioners Inland Revenue to clear refund cases on priority.
To streamline the refund issuance several proposals were under consideration, including selection of refund cases on the basis of aging, and without the involvement of senior FBR officials, it might be difficult, he stressed. He said Inland Revenue Service was the only public department in which the government had allowed double salaries as these were the people who collect money for development in the country. Now the government had decided to adopt a carrot-and-stick approach to curb the menace of corruption in the FBR.
FBR collects Rs 764.8b so far in FY11
