Rs 825-Rs 850 billion likely revenue target for 2006-07

The Central Board of Revenue (CBR) has conveyed to the International Monetary Fund (IMF) that the revenue collection target for 2006-07 would range between Rs 825 billion and Rs 850 billion, depending on the continuity in the current pace of revenue collection till the end of 2005-06.
Official sources told Business Recorder on Friday that the initial sketch of tax projections for 2006-07 was discussed by the tax authorities and Fund mission during recent series of meetings convened by the Board.
IMF technical mission, comprising Schimmelpfennig, Flecher, Hakura, Savastano and Di Tata, held a series of meetings with CBR Chairman Abdullah Yusuf and his reform team headed by Member Tax Policy and Reforms Khawaja Tanveer Ahmed and other members including Member Income Tax Salman Nabi, Member Sales Tax Shahid Ahmed and Member Customs. Presently, the mission is in the process of revamping of the taxation system under Article IV Consultation.
Sources said that CBR has estimated to collect Rs 708 billion by the end of current fiscal year against the target of Rs 690 billion, showing an increase of Rs 18 billion. The estimated target, of Rs 825 to 850 billion, for 2006-07 would be substantially higher than the target of Rs 690 billion set for 2005-06.
Officials said that CBR has not yet finalised the exact target for 2006-07. Taking into account the economic indicators, like GDP growth rate, inflation and reform initiatives including expansion of tax-base, sources said that the break-up of tax-wise projections would be hammered out on the basis of final revenue collection in 2005-06.
Keeping in view the previous years' trend of revenue collection, the initial tax projections have been worked out between Rs 825 and 850 billion for the next financial year.
Officials said that CBR would be able to surpass the target through broadening of tax base, voluntary compliance and increase in imports of dutiable items.
The CBR members also briefed the IMF team on tax-wise performance, including income tax, sales tax, federal excise duty (FED) and customs duty, officials added.