The tax machinery is facing an uphill task of collecting Rs 345.362 billion in the remaining period of current fiscal year to meet the thrice slashed revenue target of Rs 1,588 billion for 2010-11. Sources told Business Recorder here on Friday that the FBR has provisionally collected Rs 1242.368 billion during July-May (2010-11) against downward revised annual target of Rs 1588 billion, showing a shortfall of Rs 345.362 billion.
The FBR has to collect an amount of Rs 64.2 billion in the remaining 11 days of May 2011 to equate the monthly target of Rs 156 billion, putting pressure on field formations to intensify enforcement drive to meet the targets. Sources said the FBR has compiled latest data on revenue collection during July-May 20, 2011. The Board has provisionally collected Rs 91.800 billion during first 20 days of May 2011 against the monthly target of Rs 156 billion, reflecting a shortfall of Rs 64.2 billion.
The FBR has collected Rs 91.800 billion during May 2011 against Rs 62.352 billion in the corresponding period of last fiscal, reflecting an increase of 47.2 percent. Breakup revealed that the direct taxes collection stood at Rs 23.219 billion against Rs 15.591 billion in the corresponding period of last fiscal, reflecting an increase of 48.9 percent. The sales tax collection was Rs 31.378 billion during this period against Rs 31.291 billion in the same period last fiscal, showing an increase of 51.7 percent. The Federal Excise Duty (FED) collection stood at Rs 11.388 billion during first 20 days of current month against Rs 7.528 billion in the same period last fiscal, reflecting an increase of 51.3 percent. The collection of customs duty was Rs 8.095 billion during this period against Rs 7.942 billion in the corresponding period of last fiscal, showing an improvement of 22.5 percent.
During the last Chief Commissioner conference, the FBR Chairman Salman Siddiqui had informed the Chief Commissioners of Large Taxpayer Units and Regional Tax Offices that the initiatives of the Directorate General of Intelligence and Investigation Inland Revenue must be quantified and stressed the need to have an idea about the quantum of tax to be realised. He said that the economic experts were of the view that FBR would not be able to achieve its targets. He advised the participants to devise strategy for revenue collection through mapping and sharing the information so that one could have an idea as to how much tax demand will be created and collected.
Tax authorities informed the participants about injection of funds in petroleum sector out of which Rs 10 billion are earmarked for taxes. He advised the participants to device strategy for effective monitoring of withholding agents and taxpayer-specific action plan particularly by three LTUs where taxpayer population is comparatively low so as to have a fair idea of revenue generation upto June 2011. He expressed his optimism that pragmatic and concerted efforts would ensure achievements of budgetary targets, FBR Chairman added. Tax authorities are expecting increase in revenue collection due to imposition of the 15 percent surcharge and 2.5 percent increase in the special excise duty.