The Federal Board of Revenue (FBR) has fixed Rs 151.2 billion revenue collection target for April 2011, against Rs 116.9 billion of April 2010, reflecting an increase of 27 percent. Sources told Business Recorder here on Saturday that the target of Rs 151.2 billion for April 2011 has been set to meet the downward revised revenue collection target of Rs 1588 billion.
Keeping in view the target of Rs 1588 billion, the FBR has to collect around Rs 576 billion in the last quarter of the current fiscal year. The tax managers are optimistic to collect Rs 151.2 billion in April with increased efforts on direct taxes side and effective monitoring of withholding tax in the remaining months. So far, the FBR has provisionally collected Rs 1012 billion during July-March (2010-11).
During the last quarter, payment of advance tax and recovery of arrears in courts and collection of demands created would also be instrumental in collecting reasonable amount of revenue to meet the downward revised target of Rs 1588 billion.
The FBR has estimated to collect Rs 5 billion from lower rate of 4-6 percent sales tax on local supplies of five zero-rated sectors to un-registered persons in the remaining months of current fiscal year. The government has estimated to generate additional revenue of Rs 53 billion through fresh taxation measures in the last quarter (April-June) of 2010-11. The measures include imposition of 17 percent sales tax on fertilisers, agricultural tractors, pesticides, plant, machinery and equipment including parts, and imposition of 15 percent income tax surcharge for tax year 2011 and raise the rate of special excise duty (SED) from 1 percent to 2.5 percent.
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