Hafeez irked by pace of first quarter tax collection: FBR told to come up with efficient plan

Minister of Finance Dr Abdul Hafiz Sheikh has expressed dissatisfaction over the pace of revenue collection in the first four months (July-October) of 2012-13 and directed the Federal Board of Revenue to come up with an efficient plan to achieve the revenue collection target of Rs 2,381 billion during this period.
Sources told Business Recorder here on Monday that the revenue performance of the FBR came under discussion at the Tax Reform Co-ordination Group (TRCG) held at Board''s headquarters. While giving presentation on revenue collection, tax authorities admitted that the growth in revenue collection is not line with the target fixed at the time of budget (2012-13), sources said.
Hafiz Sheikh directed the FBR that the tax authorities should again workout possible revenue from all available avenues and device a clear mechanism on revenue collection to meet the target. Re-thinking should be done to review the entire gambit of revenue collection to reach a logical conclusion for meeting the laid down targets. The FBR should be clear whether the Board will reach Rs 2200 billion, Rs 2300 billion or meet the worked out revenue collection target of Rs 2,381 billion during 2021-2013. Whatever is the figure of estimated tax collection during the current fiscal year, the FBR''s data must carry authenticity, sources said. Finance Minister said that the previous FBR team was able to meet the revenue collection target during the last 11 months of 2011-2012 except last month of previous fiscal. However, the new team has not even managed to surpass the revenue collection target of the first quarter of 2012-2013.
Hafiz Sheikh made a comment: "If the performance of the FBR during the first 45 overs of the match is unsatisfactory, how it can win the match in last five overs, sources said.
Similar performance of the FBR has been witnessed during the first quarter of 2012-2013 as the Board has been unable to meet the revenue collection target during first quarter. In October 2012, so far the FBR has provisionally collected Rs 90 billion and even Rs 50 billion more are being collected, the FBR is to remain behind the assigned targets. If the FBR has been able to reach the figure of Rs 550 billion during July-October 2012-13, the tax machinery has to collect Rs 1831 billion in the remaining months of 2012-13, sources said.
Sources said that Finance Minister has further asked the FBR to give a clear strategy for achievement of the revenue collection target of Rs 2,381 billion by the end of current fiscal year. How FBR would be able to meet the huge gap of Rs 1831 billion during the current fiscal year? Finance Minister raised a question during the TRCG meeting.
Sources said that Finance Minister further directed the FBR to explain that how the tax machinery would reach the revenue collection target of Rs 2,381 billion during current fiscal year. From the start of 2012-13 the FBR has missed the monthly targets and showing a downward trend vis-à-vis targets. Whether the entire revenue would come through the administrative measures, sources quoted FM as directing the FBR.
The FBR should also readjust the target following collection of sales tax on services by the Punjab Revenue Authority (PRA) during 2012-13. The PRA''s collection needs to be excluded from the overall tax projections for current fiscal year, sources added.