FBR collects Rs712b tax revenue

Federal Board of Revenue (FBR) has collected Rs712 billion, depicting a 28 per cent increase in the first five and a half months of FY12 against Rs555 billion in the same period last year. The remaining amount of Rs1240 billion has been left to meet the tax target of Rs1952 billion in the next six months of the current fiscal year. This was said by Chairman Federal Board of Revenue (FBR) Salman Siddique while talking to Media on Monday.
FBR Chairman said Rs50 billion would be added in total collection through administrative measures, Rs21 billion from flood surcharge arrears, Rs10 billion from court cases, Rs27 billion from withholding tax recovery out of which 14 billion have already been recovered from banks and telecommunication companies. Detection of wrong GST input tax adjust claims have reached at Rs32 billion and FBR has managed to recover 12.2 billion last fiscal and Rs.1.2 billion this fiscal year. He also informed revenue leakages are being plugged with the help of revenue advisory group’s consultation.
Chairman FBR said if present trends in economic growth and inflation remain till the end of current fiscal year, FBR would achieve the tax target. He further said FBR has also decided to launch Risk Based Audit Plan based on central risk benchmarks for selection of income tax returns from January 2012. This plan would remain under implementation for next six months and risk criteria would be forwarded to 21 Regional Tax Offices (RTO) for selection of income tax returns for total audit of income tax returns and said hopes are high that this audit would yield good results, he added.
Federal Board of Revenue (FBR) has identified 0.7 million non taxpayers under broadening of tax base drive and as they have created their assets from agriculture income so as to book them under provincial agriculture income tax net. He informed that a major step is being implemented from January 2012 under which no input tax adjustment would be allowed to GST registered persons who not be demand and mention in their monthly returns CNIC and NTN of their un-registered buyers. This would not only help document the economy, but, would also help increase in revenues within this fiscal year, he added. Salman Siddique, FBR Chief said 60 per cent of 0.7 million non taxpayers; have reported that they have created the assets either from agriculture income or foreign remittances. He said once the verification of such details to be received from provinces for those who don’t have agriculture income then FBR would be taking next step to enforce Income Tax returns from them.
Salman Siddique also informed that Economic Coordination Committee (ECC) in its last meeting has discussed the demand for restoration of GST exemption on tractors. The demand is being raised that local manufacturers have decreased the production of tractors owing to low demand because of GST. He informed that FBR has held meeting with tractor manufacturers and they have negated this impression and said that ZTBL has frozen the credit line for purchase of tractors that is the main reason behind this. He said that in next ECC meeting decision would be taken on this demand. FBR Chief also informed that regime for five export oriented sectors is being revamped and soon a new regime with standard five per cent confessional rate would be implemented and final consultation would be held on the proposed regime on 23rd December.