The Federal Board of Revenue (FBR) has provisionally collected approximately Rs 80.3 billion up to October 23 2009 as compared to Rs 62.5 billion during the same period of last fiscal year, reflecting 28.2 percent growth due to better planning, enforcement, and discovering of new taxpayers in potential sectors.
Sources told Business Recorder here on Saturday that the FBR has so far achieved growth of 28.2 percent in revenue collection during October 2009 despite negative factors like slowdown in economy, load shedding, strikes, closure of businesses and law and order situation in the country. FBR Chairman Sohail Ahmed has successfully managed to improve compliance and registration of new taxpayers in key sectors under broadening the tax base exercise.
The payments made under the head of advance tax collection, minimum tax from companies declaring losses and implementation of the enforcement plan at the level of the field formations has also helped in improving collection in October 2009. Break-up of revenue collection up to October 23, 209 shows that direct taxes collection stood at Rs 33.11 billion against Rs 17.7 billion in the same period of last year. Sales tax collection stood at Rs 31.4 billion against Rs 30.6 billion.
Federal Excise Duty (FED) stood at Rs 6.9 billion against Rs 5.4 billion, and collection of customs duty was Rs 8.8 billion against Rs 8.8 billion. Sources said that the FBR Chairman had set up a Revenue Generation Task Force and implemented enforcement plan to ensure proper monitoring of the registered units.
This is for the first time in the history of the FBR that tax authorities have provisionally achieved growth of 28.2 percent despite negative indicators of the economy. FBR chairman is regularly getting updates on the enforcement/compliance from FBR Members Domestic Operations, North/South.
When asked how growth has been achieved in prevailing business environment, sources said that strict monitoring of unregistered sectors like hotels/restaurants and many other sectors had also contributed in overall improved collection during this month. On the same pattern, the FBR has enforced filing of withholding tax statements by the withholding agents and data has been used for broadening the tax-base. At the same time, refunds have been expedited during current fiscal 2009-10.
According to data, the FBR received 12,82,118 returns/statements as compared to 10,72,742 during Tax Year 2008, reflecting growth of 20 percent. The board collected around Rs 4 billion tax along with the returns/statements during Tax Year 2009 against Rs 2.5 billion in Tax Year 2008, reflecting a growth of 58 percent.
Sources said that FBR is hopeful to achieve the monthly target of Rs 120 billion in view of current pace of revenue collection up to October 23. FBR Chairman is also convening meetings with the business and trade in all major cities to ensure compliance by the business community.
Sources said that composite audit of the companies and Association of Persons (AOPs) is also underway which would also improve the level of compliance. The electronic filing system has also improved compliance at the level of field formations. The enforcement plan has also effectively controlled the number of non-filers, short-filers and stop-filers of returns. Besides, new taxpayers have been brought into the tax net on the basis of database available with the department.
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