ISLAMABAD (July 01 2008): The provisional revenue collection is likely to exceed Rs 1 trillion in 2007-08 against the revised target of Rs 990 billion, as the Federal Board of Revenue (FBR) touched the figure of nearly Rs 990 billion by the end of June, reflecting extraordinary performance during last year.

Sources told Business Recorder on Monday that the board had collected around Rs 971.3 billion till June 28. The provisional revenue collection figure for June 2008 has reached nearly Rs 144 billion against the required amount of Rs 140 billion, meeting the target of Rs 990 billion.

The board has estimated to collect an amount over and above Rs 24 billion on June 30, taking final collection to Rs 990 billion during 2007-08. Incorporating figures of June 29 and 30, tax managers were confident that the FBR might present the figure of nearly Rs 1 trillion before the meeting of Economic Co-ordination Committee (ECC) of the Cabinet.

Break-up of revised target of Rs 990 billion showed that direct taxes target was fixed at Rs 385 billion, whereas indirect taxes target was Rs 605 billion for 2007-08. Tax authorities have expressed hope that the board would meet both direct and indirect tax targets for the fiscal year. It is expected that the FBR would officially announce collection figures on July 3 to celebrate record collection in the year.

The revenue collection from National Bank of Pakistan (NBP) branches in far-flung areas would also be instrumental in improving revenue collection in the next one/two days. On the other hand, sales tax amnesty scheme for payment of principal amount for wavier of penalty and additional tax expired on June 30.

The amount collected from amnesty scheme would also be incorporated in the overall sales tax collection. The sales tax collection from imports and domestic consumption would be updated in the next one-two days.

The withholding tax collection, better monitoring, books adjustments and income tax collection from demands raised would also help in improving revenue collection. The compilation of final figures of collection made in June 29-30 would take the total to Rs 1 trillion.

Sources said that the FBR has broken all previous records of revenue collection, evident from the provisional collection in June. This is for the first time that the board is going to cross psychological barrier of Rs 1 trillion.

It is worth mentioning that the board had collected Rs 851.3 billion (net) during the first eleven months (July-May) of 2007-08 as compared to Rs 722.2 billion in the same period of last year thereby posting an increase of 18 percent. In May 2008, the FBR collected Rs 87.7 billion which is 33.5 percent more than the same period of last year, bolstered by strong growth of 42.1 percent for sales tax (domestic activity 80.6 percent) and 33.4 percent for customs duty.

Copyright Business Recorder, 2008