The Central Board of Revenue (CBR) has estimated to cross Rs 590 billion in July-June (2004-05), says a CBR analysis on revenue projections. Official sources told Business Recorder on Tuesday that the revenue collection analysis has confirmed that the targets will be met in current fiscal year. It has been estimated that overall collection of direct taxes will be between Rs 182 billion and Rs 185 billion during July-June (2004-05).
This relies heavily on advance tax receipts, which are traditionally in the middle of June 2005 and the performance of the corporate sector. Moreover, significant growth in withholding taxes will also contribute to revenue on the direct taxes side.
According to the analysis, the overall net collection of sales tax will be around Rs 239 billion. This requires a substantial effort in increasing GST collection in June 2005. The estimated sales tax collection of Rs 32 billion in June 2005 will have to be equally shared by the GST collection at the import stage and domestic consumption.
Judging from the past and the performance of leading revenue spinners during the first 11 months of current fiscal, it does not appear to be a difficult target. It is expected that GST collection from domestic commodities, including sugar, cotton, cigarettes, cement, fertilisers, telephone and tele-fax services, electricity and other products will increase in June 2005.
The CBR has calculated that the central excise duty collection would cross Rs 54 billion in July-June current fiscal year as over Rs 7 billion of net receipts are expected from the excisable commodities in June 2005.
On the basis of strong import demand, the CBR has estimated to collect Rs 115 billion as customs duty by the end of the current fiscal year.
The report said the broad-based growth of leading federal taxes is consistent with the performance of the economy. For instance, the 9.8 percent growth of direct taxes during July-May (2004-05) is in line with improved profitability of the corporate sector.