The Federal Board of Revenue has to collect Rs 121 billion in the remaining three days of June 2011 to meet the thrice downward revised revenue collection target of Rs 1588 billion, intensifying efforts of tax machinery to generate additional revenue.
Sources told Business Recorder on Monday that the Board has provisionally collected around Rs 155 billion during first 26 days of current fiscal against the target of Rs 275.5 billion, reflecting a shortfall of Rs 120.5 billion. With only three days left for outgoing fiscal, the FBR collected nearly Rs 155 billion up to June 26 against Rs 128.34 billion in the same period last fiscal, reflecting an increase of 20.7 percent. In June last fiscal, the total tax collection stood at Rs 191 billion.
The FBR latest data revealed that so far total provisional revenue collection stood at Rs 1467 billion during July-June 2011-2012 against target of Rs 1588 billion, reflecting a shortfall of Rs 121 billion. According to sources, so far the FBR has collected Rs 30 billion from taxation measures taken in March 2011. Out of estimated amount of Rs 53 billion from March measures, over Rs 18 billion would be collected by end June 2011. An amount of Rs 67 billion was estimated from advance tax during current fiscal against Rs 51 billion collected in the same period last fiscal.
The FBR internal working estimated collection of Rs 279.2 billion in June 2011 against the target of Rs 275.5 billion during this period, reflecting an increase of Rs 3.7 billion. Sources further revealed that the Board had estimated to collect Rs 40 billion through ongoing administrative and enforcement efforts in June including major chunk of revenue of Rs 20 billion from Karachi and around Rs 5 billion from Lahore during this period. Other recovery proceedings are expected to generate an additional amount of Rs 10 billion in June 2011.
As per FBR estimates, the estimated collection for one day, June 27, is Rs 6.05 billion, June 28 Rs 11.3 billion, June 29 Rs 27.3 billion and the FBR has projected to collect Rs 67 billion on last day of the current month ie June 30, 2011. The FBR has provisionally collected Rs 1467 billion during July-June 26 2011 against Rs 1265 billion in the same period last fiscal, reflecting an increase of 16 percent. Direct tax collection stood at Rs 550.92 billion against Rs 485.130 billion last year, reflecting an increase of 13.6 percent.
Sales tax collection was Rs 608.101 billion against Rs 508.227 billion, showing an increase of 19.7 percent. Sales tax collection at the import stage was Rs 301.700 billion against Rs 240.477 billion, reflecting an increase of 25.5 percent. The reduction in sales tax from 17 to 16 percent and abolition of the special excise duty (SED) from June 20, 2011 on imports would also improve sales tax collection at the import stage.
Sales tax collection on domestic consumption was Rs 306.401 billion against Rs 267.750 billion in the same period last fiscal, reflecting an increase of 14.4 percent. The FBR has collected Rs 133.302 billion as federal excise duty (FED) during the period under review against Rs 117.536 billion, showing an increase of 13.4 percent. The collection of customs duty was Rs 175.023 billion during July-June 2011-2012 against Rs 154.261 billion, showing an increase of 13.5 percent.
The monthly collection revealed that the FBR has collected nearly Rs 155 billion during June 2011 against Rs 128.348 billion in the corresponding period of last fiscal, reflecting an increase of 20.7 percent. Breakup revealed that direct tax collection stood at around Rs 70 billion against Rs 60.139 billion in the corresponding period of last fiscal, reflecting an increase of 16 percent.
The collection of domestic taxes (direct taxes, sales tax and federal excise duty) was Rs 139.091 billion against Rs 113.826 billion in the same period last fiscal, reflecting an increase of 22.2 percent. The sales tax collection was Rs 55.669 billion during this period against Rs 42.994 billion in the same period last fiscal, showing an increase of 29.5 percent.
The Federal Excise Duty (FED) collection stood at Rs 13.688 billion during current month against Rs 10.695 billion in the same period last fiscal, reflecting an increase of 28 percent. The collection of customs duty was Rs 15.863 billion during this period against Rs 14.520 billion in the corresponding period of last fiscal, showing an improvement of 9.2 percent.