Revenue Performance Group of the Tax Reform Co-ordination Group (TRCG) has given preliminary estimate of around Rs 1870 billion as revenue collection target for the Federal Board of Revenue (FBR) during 2011-2012. Sources told Business Recorder here on Wednesday that Revenue Performance Group convened its first meeting to discuss the revenue estimates based on the available data.
Revenue Performance Group has informed the FBR that the revenue estimates of Rs 1952 billion for 2011-2012 seemed to be unachievable taking into account the growth rate and other economic indicators. The Group would analyse the basic data before finalisation of the revenue collection target for 2011-2012. The Revenue Performance Group would convene another meeting next week taking into account necessary information. The Group would also determine the actual tax gap before finalisation of annual target for 2011-2012.
The tax officials have informed the Group that the FBR will be able to collect Rs 1830 billion in 2011-2012 taking into account 18 percent growth in revenue and other factors without taking administrative measures. The FBR will take administrative measures of Rs 60 billion including Rs 20 billion from illegal input tax adjustments, Rs 10-12 billion from stuck up arrears and around Rs 5 billion from 7 lakh new taxpayers. Other enforcement measures would also generate revenue in 2011-2012. If necessary, the FBR may propose additional measures to meet the budget estimate of Rs 1952 billion for 2011-2012.
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