The Ministry of Finance has fixed Rs 1710 billion as revenue collection target for the Federal Board of Revenue for 2010-11 against Rs 1,380 billion for 2009-10, reflecting an increase of Rs 330 billion. Sources told Business Recorder on Friday the projected figure of Rs 1710 billion has been indicated by the Finance Ministry to the FBR for next fiscal year.
The federal budget including taxation proposals and relief measures would be chalked out on the basis of Rs 1710 billion revenue collection target for next fiscal. According to the estimates of the Finance Ministry, the FBR could collect an amount of Rs 1710 billion next fiscal year keeping in view the work done by the policymakers.
It is expected that the direct taxes in the overall collection could be around 40 percent as compared to 60 percent share of indirect taxes. However, the FBR would try to increase the overall share of direct taxes under the policy of the government. The share of federal excise and customs duty is already decreasing in the overall indirect taxes collection every year.
Based on the projected figure, total net impact of taxation measures to be taken in budget (2010-11) would be chalked out by the FBR. The net impact of taxation measures would be determined in view of tax/relief measures. Value Added Tax - another vital measure to broaden the tax base - may have reasonable implications if taken into account next fiscal year or otherwise.
The target of Rs 1380 billion was fixed for 2009-10 taking into account the GDP, rate of inflation, tax buoyancy and other key economic indicators at that time. At the time of budget (2009-10), it was estimated that total net impact of taxation measures was around Rs 63.957 billion.