The Central Board of Revenue (CBR) has transmitted mid-term 'tax projections' and 'revenue-to-GDP ratio' from fiscal 2004-05 to 2008-09 to the International Monetary Fund (IMF). Official sources told Business Recorder here on Monday that 'tax projections' and revenue-to-GDP ratio for the next five years had been submitted to the Fund mission on the conclusion of 9th review by the Fund under the Poverty Reduction Growth Facility (PRGF).
The CBR has informed IMF that the target is to achieve 0.2 percent per annum growth in the tax-to-GDP ratio on account of ongoing reforms. This growth would be achieved as a result of the reform process.
The CBR has worked out new projections on the basis of revenue to GDP ratio, which excludes petroleum levy. CBR revenue to GDP ratio constitutes 85 percent of total taxes.
According to projections, the CBR is committed to collect Rs 590 billion during current financial year, keeping in view the revenue to GDP ratio of 9.5 percent.
The collection would be Rs 675 billion in 2005-06, taking into account CBR revenue to GDP ratio of 9.7 percent.
The CBR would have to collect Rs 750 billion in 2006-07 keeping in view CBR revenue to GDP ratio of 9.9 percent.
The revenue collection has been projected at Rs 850 billion in 2007-08 based on the estimated CBR revenue to GDP ratio of 10.1 percent. The CBR revenue collection target would be Rs 960 billion in 2008-09,m taking into account CBR revenue to GDP ratio of 10.3 percent.