The Federal Board of Revenue will cross the psychological barrier of Rs one trillion mark in 2007-2008, expecting that economy would remain stable in the country.
Explaining board-in-council decisions, FBR official spokesperson and Member Facilitation and Taxpayer Education Khawar Khurshid Butt informed a press conference on Wednesday that the council is hopeful to cross Rs 1 trillion by the end of current fiscal year. However, due to current political situation and other difficulties, annual budgetary tax collection target of Rs 1.025 trillion seems unachievable.
Referring to the revenue collection for the current financial year, the FBR Chairman informed the council that despite all odds FBR was still in a position to cross Rs one trillion mark by June 30, 2008, provided we all work hard and feel our national obligations.
FBR Member Fiscal Research and Statistics informed that revenue loss of Rs 35 billion was estimated due to the political and other reasons. However, during the last two months the improved revenue collection has helped bridge this gap by Rs 10 billion and now the estimated revenue loss stands at Rs 25 billion in 2007-2008.
He said that if there is further improvement in economic activity, the revenue collection could be over and above Rs 1 trillion in 2007-2008. He said that oil and gas sector has contributed Rs 24.6 billion in total revenue collection in 2007-2008 against Rs 18.2 billion in the same period last fiscal, indicating an increase of 35 percent.
Federal excise duty collection from oil sector witnessed a decline during current fiscal, as FED collection amounted to Rs 1.7 billion during July-February (2007-2008) against Rs 2.7 billion during the same period of last fiscal.
The customs duty collection on the petroleum products was Rs 11.6 billion during July-February against Rs 8.9 billion in the same period last fiscal, reflecting growth of 31 percent. Member FRS said that the recent increases announced in POL prices are expected bring around Rs 3 billion additional revenue for the FBR in next four months.
Due to the sales tax zero-rating announced on import of crude oil on November 30, 2007 the FBR has suffered a revenue loss of Rs 3.5 billion which would be recovered during next three months on sales of POL products produced from such crude oil, he explained.
Secretary General, Revenue Division/Chairman, FBR Abdullah Yusuf has directed the Member (IMS)/CEO PRAL to co-ordinate with technical wings of the Board to clearly identify problems being faced by the taxpayers in e-filing of returns, Tax Management System and computerised system of payment of taxes and all possible efforts be made in collaboration with NBP to resolve them at the earliest.
He was addressing the members of the Board-in-Council, which met here yesterday. FBR Chairman presided over the meeting, which lasted for about nine hours. While reviewing the progress of various ongoing reforms projects, the Chairman directed Member (TARP) and the line members to observe time line and expedite completion of refurbishment of the RTOs/MCCs. He also directed the Member (TARP) and Member (IMS) to make necessary arrangements to provide computer hardware to field formations - LTUs & RTOs on priority basis.
The Chairman directed the Sales Tax Wing to ask collectors to conduct selective taxpayers'' audit wherever they have any doubt. He also directed Member (Audit) to evaluate the audits, conducted by Large Taxpayer Unit (LTU), Lahore, and inform the Council about its results.
Board-in-Council also dilated upon the security arrangements currently in place at FBR Headquarters and its field formations, particularly in major cities of the country. The Council asked Member (Admn) to ensure foolproof security arrangements at all FBR buildings.
Shortage of staff at FATE/Audit Wings also came under review and the Council decided to ask Member (Admn) to meet their staff requirements. The purchase of buses for pick and drop of staff from the offices will be examined by Member (TP&R) and the issue will be discussed in the next Board meeting.
Member FATE informed the Board that all representations u/s 7 of FBR, Act: 2008 to the Chairman FBR will be received in the FATE Wing and then sent to respective members for their comments. The meeting was informed that a window was being opened in the FBR website where such representations could be submitted on line for redressal of grievances which are simple in nature, Khawar Khurshid Butt added.