The Central Board of Revenue (CBR) will revise revenue collection target upward in current financial year to help the government in meeting the deficit due to subsidising petroleum prices touching $55 per barrel in the international market. On the other hand, petroleum products are being supplied in the country at lesser rate to control prices.
Official sources told Business Recorder here on Monday that the revenue target would be enhanced from Rs 580 billion on the request of the government. However, they did not give the exact figure.
The government predicts Rs 70 billion impact of fuel prices capping up to June 30, 2005. Presently, the impact of capped fuel oil prices is Rs 20 billion. The deficit will touch Rs 70 billion in case price hike trend continued by the end of current fiscal year.
Officials said, "the target is not being enhanced due to any pressure from the International Monetary Fund (IMF). The government needs more money and it is looking towards tax machinery to achieve this objective. This increment in revenue collection target has nothing to do with the Fund mission or international donors".
The government did not increase the prices of petroleum products as per increase in international oil prices. The subsidy resulted in shortfall of revenue.
When asked any extra revenue measures were needed for achieving the enhanced target, officials said that the tax authorities would not take any extra revenue measures for achieving the revenue targets. The CBR will focus on expanding the tax net through measures/schemes announced in budget 2004-05.
They said that the CBR will not find any difficulty in achieving the enhanced target as it has conveyed to the International Monetary Fund (IMF) that the tax agency has the required capability to collect Rs 10 billion over and above the laid down target of Rs 580 billion for 2004-05. On the basis of continuos upbeat trend during the previous fiscal year, the CBR will be able to cross Rs 590 billion in 2004-05.
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