More than 100 percent growth has been registered in revenue collection from 1999 to 2006, Central Board of Revenue (CBR) Chairman M Abdullah Yousaf said on Sunday. Talking to PTV, he said revenue amounting to Rs 712 billion was collected in 2005-06. While it was only Rs 300 billion in 1999.
Around 20 percent increase had also been registered in the annual revenue collection during the last two years, he added. Persistent policies, good governance, sustained GDP growth and reforms in CBR helped in achieving the targets, he said.
Presently, only one third of economy was actually paying the taxes. Contribution from agriculture sector was meagre. Service sector is contributing up to 50 percent in GDP growth but are paying only 25 percent.
Extraneous efforts are underway to further increase it aiming to meet the requirements of the country as there was a potential of paying at least Rs 2,136 billion of taxes annually.
The reliance on direct taxes is being decreased gradually. The proportion of indirect taxes in total revenue collection has been reduced up to 69 percent from 82 percent. Likewise the proportion of direct taxes was reduced to 18 percent, which was 31 percent during 1990, he said.
Brushing aside the perception that salaried class was major contributor in revenue collection, he said the contribution of salaried class was only Rs 13 billion and in total Rs 712 billion collected during 2005-06.
Self-assessment system has been working for paying income tax. Only 05 percent forms are being scrutinised on test bases just to ensure that the system was working.
Efforts were underway to curb the menace of smuggling through various measures, including inking of agreements with various countries to know exact price of the smuggled goods at the starting point.
As many as 13 regional tax offices are being established in many cities for facilitating public to pay sales tax, income tax and excise duty under one roof.
Two large tax-paying units have also been established in big cities. While one more would also be established aiming to facilitate people, he added.
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