The Federal Board of Revenue has potential to generate an additional amount of Rs 100 billion through administrative measures on sales tax, customs duty and income tax side during 2009-10. Sources told Business Recorder on Wednesday that the FBR had projected to collect an additional amount of Rs 32 billion as a result of administrative measures by plugging the loopholes during current fiscal.
However, it has been found that the revenue to the tune of Rs 100 billion could be generated by focusing on non-company sector and small and medium cases. If the FBR would focus on non-filers and nil filers, it would help in generating extra amount of revenue. The focus should be on professionals, restaurants, hotels, Association of Persons (AOPs), traders, retailers, wholesalers, contractors and other service providers, who are still out of the tax net. Administrative actions to control smuggling, under-invoicing and under-valuation would also generate additional revenue during this period.
Instead of target of Rs 32 billion, the FBR would be required to focus on estimated amount of Rs 100 billion. This amount would be helpful in improving the overall revenue collection position during 2009-2010 to meet the ambitious target of Rs1,380 billion. Through strict enforcement and compliance, it is possible to generate an extra amount of Rs 100 billion during current fiscal.
The FBR has issued instructions to Member Policy Direct Taxes, Member Policy Indirect Taxes, Member Domestic Operations, (North) and Member Domestic Operations, (South) for exploring areas for increasing maximum revenue through administrative measures. Enforcement would be done by implementation of the strategy communicated to the field formations.
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