The federal government has fixed Rs 1.025 trillion revenue target for financial year 2007-2008, which is Rs 190 billion higher as compared to the Rs 835 billion of last fiscal. So far, the CBR has collected Rs 719.6 billion in July-May (2006-2007) against Rs 610.6 billion in the corresponding period last fiscal, indicating a growth of 17.9 percent.
Taxation measures on the sales tax and income tax would enable the CBR to meet the target of Rs 1.025 trillion in the fiscal 2007-2008. According to the break-up of target, direct tax receipts have been projected at Rs 408 billion, higher by Rs 88 billion than the target of Rs 320 billion for the on-going fiscal.
The share of indirect taxes has been projected at Rs 622 billion denoting Rs 104 billion raise as compared to the previous year's Rs 518 billion. The government has estimated income tax collection at Rs 388 billion during 2007-2008 against the revised target of Rs 305 billion giving tax managers the task of generating Rs 83 billion to bridge the gap.
Further break-up shows that customs duty was projected at Rs 154 billion, as compared to Rs 134 billion revised estimates for the year 2006-2007. The customs authorities have been assigned to generate Rs 20 billion more in the upcoming fiscal.
Sales tax target has been enhanced to Rs 375 billion, from Rs 311 billion as per revised estimates of 2006-2007. This indicates that the sales tax wing will have to collect Rs 64 billion more in the new fiscal.
The share of the federal excise duty (FED) has been fixed at Rs 91 billion against enhanced target of Rs 72 billion for the outgoing fiscal. The board has to collect Rs 19 billion more in fiscal 2007-2008 from excisable commodities.
Out of total direct taxes target of Rs 408 billion, the target of capital value tax (CVT) has been projected at Rs 6500 million against last year's estimates of Rs 5,000 million. The estimate of worker's welfare tax (WWT) has been projected at Rs 2,800 million against last year's revised projection of Rs 1,500 million.
The target of Worker's Participation Tax (WPT), has been fixed at Rs 7,700 million as compared to the revised target of Rs 6,500 million. The share of foreign travel tax has been projected at Rs 3,250 million.