The federal government has set a Rs 1,952 billion tax collection target for 2011-12, which is Rs 364 billion higher than the downward revised target of Rs 1588 billion for the current fiscal year ie 2010-11. The Budget documents for 2011-12 revealed that an ambitious revenue collection target of the FBR has been fixed at Rs 1952 billion for 2011-12 against the budgetary target of Rs 1667 billion, reflecting an increase of Rs 285 billion.
The revenue collection target was revised downward to Rs 1604 billion for 2010-11 which was further slashed to Rs 1588 billion for current fiscal year. So far, the tax machinery has provisionally collected Rs 1310.39 billion during July-May (2010-11) against Rs 1,136.8 billion collected during the corresponding period of the last year, reflecting an increase of 15.3 percent.
According to the break-up of tax projections for 2011-12, direct tax receipts have been estimated at Rs 743.600 billion as compared to budgetary target of Rs 657.7 billion for the on-going fiscal year. When compared with revised target of Rs 626.900 billion of direct taxes, the tax projection has been worked out at Rs 743.600 billion, reflecting an increase of Rs 117.7 billion.
The share of indirect taxes has been projected at Rs 1330 billion as compared to revised estimates of Rs 1052 billion for 2010-11. The government has estimated income tax collection at Rs 718.600 billion during 2011-12 against the revised target of Rs 602.500 billion, giving tax managers the task of generating Rs 116.1 billion extra to bridge the gap.
In the category of direct taxes no target has been fixed for capital value tax (CVT) for 2011-12 as the CVT on immovable property has been transferred to provinces after 18th Amendment. Last fiscal year, the revenue projected under the head of the CVT was Rs 4700 million.
The government has estimated to collect around Rs 25 billion from Workers' Welfare Fund during 2011-12 against target of Rs 20 billion for 2010-11. However, there is no target of workers' participation fund for 2011-12.
The budget estimates of sales tax for fiscal year 2010-11 were Rs 674.900 billion, which have now been raised to Rs 836.700 billion. The sales tax projections have been estimated at Rs 836.700 billion for 2010-11 on the basis of withdrawal of sales tax exemptions and zero-rating with removal of distortions in the existing sales tax regime.
Sales tax collection stood at Rs 552.431 billion during July-May (2010-11) against thrice revised downward target of Rs 541.900 billion set for July-May current fiscal year. The government has estimated generation of around Rs 165.600 billion on account of federal excise duty (FED) during next fiscal year. The receipts from federal excise duty were budgeted at Rs 153.600 billion for 2010-11. However, the target of excise duty has been revised downward to Rs 132.900 billion for 2010-11. The collection of federal excise duty (FED) was Rs 119.614 billion during July-May 2010-11 against the target of Rs 115.200 billion set for this period.
The target of customs duty has been projected at Rs 206.400 billion for 2011-12 against the budgetary target of Rs 180.800 billion, reflecting an increase of Rs 25.6 billion. The customs duty collection stood at Rs 159.160 billion during July-May 2010-11 against the target of Rs 157.600 billion set for July-May of current fiscal year.
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