The Federal Board of Revenue (FBR) has asked the Ministry of Finance to revise the proposed target of revenue collection from Rs 1405 billion to Rs 1380-1390 billion for fiscal year 2009-10. Sources told Business Recorder on Friday that the government is likely to adjust tax projections for fiscal 2009-10.
The new revenue target might range between Rs 1380 and Rs 1390 billion against the proposed Rs 1405 billion-Rs 1410 billion. However, meetings were underway between Ministry of Finance and FBR, and final decision would be taken on Saturday. It is expected that the target would be reduced in view of shortfall in revenue collection during 2008-09.
FBR had collected Rs 989.09 billion during 11 months of 2008-09 against Rs 856.203 billion of the same period of 2007-08, reflecting an increase of 15.5 percent. The target for 2008-09 was thrice revised in view of factors like global economic recession; fluctuation in POL prices; slowdown in imports and low profitability of the corporate sector, sudden changes in economic activities, slowdown of manufacturing process, import trends and current law and order situation in the country.
In case the FBR revenue collection should reach up to Rs 1 trillion during 11 months of 2008-09, the tax machinery has to collect Rs 170 billion to meet the current downward revised target of Rs 1170 billion. If the existing revenue collection is compared with the original target of Rs 1250 billion, the FBR has to collect Rs 250 billion by the end of June.