The resource-constrained federal government collected 17 per cent or Rs229.392 billion more on account of direct and indirect taxes during last financial year, 2010-11. According to data released by the central bank, the year under review saw the Federal Board of Revenue (FBR) collecting Rs1,558,014 million against Rs1,328,622 million collected in FY2009-10. Of the total collected revenue, Rs602,451 million were raised under the head of direct taxes while the amount collected as indirect taxes amounted to Rs955,563 million.
An across-the-board increase was seen in the government tax collection with the collection of direct and indirect taxes growing, respectively, by Rs13.9 per cent or Rs73.802 billion and 19.44 per cent or Rs 155.590 billion. The State Bank of Pakistan (SBP), last year in FY2009-10, had calculated the government’s collections under direct and indirect taxes at Rs528,649 million and Rs799,973 million, respectively.
The revenue collected under the three categories during FY11 accounted, respectively, for Rs633,357 million, Rs137,353 million and Rs184,853 million, the SBP figures show. While the economic observers propose the imposition of direct taxes the levy still constitutes 37 per cent of the total Rs1.558 trillion collected during FY11. The indirect taxes are more in volume and form 61.3 per cent of the total collections. The revenue generation and collection is significant for the present resource-constrained government which is faced with a huge fiscal deficit.
