The Federal Board of Revenue has arrived at a conclusion that the extensive audits of withholding agents, corporate cases and other potential revenue cases registered with the sales tax department is necessary for achieving the revenue target of Rs 1300 billion for 2008-09.
According to the FBR quarterly review issued here on Saturday, in the backdrop of global economic meltdown and deteriorating law and order conditions in the country, the achievement of the revenue target for the current year appeared to be an uphill task.
During second half of 2008-09, the major burden is on the two core taxes ie income and sales tax as they have to collect Rs 602 billion, which is 81 percent of the remaining target at Rs 745 billion. So, the administration of these two taxes must revitalise their strategy to achieve the desired target.
In this regard, the major thrust should be on plugging the loopholes by extensive audits of withholding agents, corporate cases and other potential revenue cases pertaining to sales tax. A concerted and planned effort coupled with a strong will could help the FBR to even achieve this uphill task.
The upward revised revenue target of Rs 1300 billion for fiscal year 2008-09 is challenging amid severe local and global economic crisis. To achieve the huge revenue target extraordinary efforts would be required. The six monthly target of Rs 555 billion has been achieved to the extent of 99.8 percent. Keeping in view the deteriorating national and international economic conditions this performance is satisfactory.
However, there will be more pressure in the second half of current fiscal year to collect the remaining balance of Rs 745 billion which is about 58 percent of total revenue target, the FBR added. Though the revised target for first half of 2008-09 has almost been achieved, but to achieve the overall target for the second half of current fiscal year appear to be an uphill task particularly for direct taxes and sales tax (domestic).
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