The Federal Board of Revenue (FBR) has started a detailed review of budgetary impact of taxation measures taken in 2015-16 and collection from new measures during first quarter (July-September) of 2015-16. Sources told Business Recorder here on Wednesday that the revenue collected from budgetary measures during first quarter of 2015-16 would be discussed during a meeting at the FBR House to be convened on Thursday (October 8).
In budget (2015-16), the government had withdrawn concessionary/exemptions statutory regulatory orders (SROs) of Rs 132 billion. At the time of budget, the FBR had taken revenue generation measures of Rs 238.200 billion and administrative measures of Rs 15 billion. In total, the taxation and administrative measures came to Rs 253.46.255 billion. The FBR had taken relief measures of Rs 29.210 billion. Out of Rs 238.200 billion new taxation measures, direct taxes measures of Rs 152.750 billion were taken in last budget. Sales tax and federal excise duty measures totalled Rs 58.060 billion. The taxation measures of customs duty totalled at Rs 56.600 billion.
Through amendments to the Finance Bill 2015, the government estimated revenue loss of around Rs 12 billion as a result of relief measures and reduction in duties and taxes after budget. The revenue impact of relief measures of sales tax and Federal Excise Duty (FED) stood at approximately Rs 5 billion. Direct taxes relief would cause estimated revenue loss of Rs 7-8 billion. The total estimated revenue loss of sales tax, income tax and Federal Excise Duty measures totalled Rs 12 billion through amendments introduced in the Finance Bill 2015.
Budget makers had estimated Rs 35 billion from adjustable advance income tax on banking instruments and other modes of transfer in case of non-filers; Rs 24 billion from super tax imposed on rich individuals, association of persons (AoPs) and companies and Rs 23 billion from increased cost of non-compliance with tax laws.
According to the revenue impact of taxation measures taken in budget (2015-16), rationalisation of tax rates for various sources of banking companies Rs 6 billion; renting out machinery and certain equipment Rs 5 billion and rationalization of withholding tax on fertiliser wholesalers, dealers and retailers of Rs 3 billion.
The change in rate of tax and taxable holding period for securities would generate Rs 4 billion; rationalization of rate of tax on dividend Rs 3 billion; taxation of capital gains from sale of securities representing futures contracts Rs 2 billion; advance tax on fee remitted abroad from Pakistan Rs 750 million; taxation for not distributing dividend Rs 1 billion and withholding tax on internet usage Rs 3 billion.
SRO.565(I)/2006 recommendations would generate Rs 1.25 billion; fifth schedule A. part-I concession withdrawn and reduced Rs 1 billion; part-III (fifth schedule) poultry and live stock sectors concession reduced would generate Rs 2.5 billion. The concession withdrawn from textile sector items would generate an amount of Rs 500 million; concession reduced on fruits from Afghanistan Rs 500 million; concession on HSD withdrawn Rs 5 billion; part-IV (fifth schedule) (a) concession on POL products withdrawn Rs 19 billion; RD on @7% on furnace oil replaced with 5% customs duty and 2 percent RD Rs 15 billion; SRO.678(I)/2005 concessions reduced Rs 500 million; SRO 811(I)/2004 concessions withdrawn Rs 100 million and SRO 559 concessions withdrawn Rs 50 million.
The substitution of 1% duty slab with 2 percent customs duty would result in extra revenue of Rs 5 billion; rationalization of customs duly on tyres Rs 2 billion; rationalization of customs duty on coal Rs 2.5 billion; rationalization of customs duty on cement Rs 100 million; rationalization of customs duty on parts for grinders, mixer, juice extractors etc Rs 200 million; rationalization of customs duty on linear alkyl benzenes Rs 200 million; rationalisation of customs duty on master batches Rs 50 million; rationalisation of customs duty on polymers of styrene Rs 50 million; rationalisation customs duty on ball bearings Rs 50 million; rationalisation of customs duty on loudspeakers Rs 50 million; creation of new PCT codes for localised auto parts Rs 500 million and review of RD on steel sector would generate Rs 500 million.
The decision to abolish zero rated status of certain dairy products like yogurt, flavoured milk, butter, cheese sold in retail packing under a brand name would generate Rs 5 billion; withdrawal of exemption from certain goods like poultry feed, cattle feed, incinerators, snow ploughs Rs 1 billion; proposal to enhance the rate of sales tax on certain items of the eight schedule to the Sales Tax Act, 1990 like soyabean meal, plant, machinery not manufactured locally, equipment for grain handling and chemicals meant for mineral explorations etc. Rs 6 billion; replacement of SRO1125(I)/2011, Rs 4 billion; rationalisation of sales tax rates on steel sector Rs 8 billion; increase the rate of sales tax on import of mobile phones Rs 5 billion; enhancement in rate of further tax Rs 8 billion; enhancement in deemed value of supply of coal Rs 560 million; enhancement in rate of federal excise duty on cigarettes Rs 12 billion; federal excise duty on filter rods Rs 1 billion; enhanced the federal excise duty on aerated water Rs 3 billion; services in Islamabad capital territory ordinance, 2001 and Balochistan sales tax on services ordinance Rs 1 billion and disallowing input adjustment of federal excise duty on domestic air travel would generate revenue of Rs 3.5 billion in 2015-16.
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