The Federal Board of Revenue (FBR) is faced with difficulties in collecting the revenue target for the second quarter of the current fiscal year after missing the target of first quarter with a wide margin of Rs 52 billion.
A source disclosed that the economic situation in the country was not good due to number of reasons and the political uncertainty and wrong economic policies were responsible for lack of activity in the market.
The government has imposed taxes on the non-filer traders and real estate sector. This has significantly slowed down activity in the housing and construction sectors. It has affected more than 40 industrial sectors which contributed a lot in the taxes. ‘We don’t have numbers but the market pulse is signifying it’, he added.
‘If the tensions between PTI and PML-N intensify in November, then chances for achieving the tax target for the second quarter will be definitely over. This will put a lot of pressure on the government to introduce new taxation measures but will not in a position to do so as it will further make it unpopular’, the source said.
The FBR has collected Rs 625 billion during first quarter (July-September) FY17 against Rs 600 billion generated during the same period, reflecting an increase of Rs 25 billion. However, the figure was still short of Rs 52 billion for meeting the target of first quarter.
The FBR estimates that the marginal increase in sales tax collection from petroleum products on imports, 28 per cent decline in domestic Sales Tax collection (local stage/supplies) on POL products, zero-rating of inputs of five export sectors, less advance income tax collection and the substantial reduction in sales tax on urea fertiliser and other relief measures taken in last budget contributed in comparatively less collection during first quarter against the assigned target.
