The Federal Board of Revenue (FBR) has chalked out a new revenue collection strategy by putting a major focus on broadening tax base and recovery of Rs 84 billion from illegal input tax adjustment with a view to achieving Rs 1952 billion ambitious revenue collection target for 2011-12.
Sources told Business Recorder here on Thursday that during the last Board-in-Council meeting of the FBR, the revenue position was discussed in detail and it was unanimously concluded that not only the revenue targets for the current fiscal year but the future revenue efforts would also hinge upon broadening the tax base effectively. For the current year, it was decided that the Director General of Intelligence and Investigation (I&I), Inland Revenue (IR) "shall" come up with his thoroughly chalked out workable plan by the first week of March, 2012.
According to a national strategy, the directorate would compile data of complete stock-taking of the information received, disseminated and the details of new taxpayers with their filing of returns, assessments finalised recoveries/payments with breakup as payments along with returns and as a result of assessments finalised. The FBR would also work out minimum and optimum revenue expected to be generated up to June 30, 2012 through strenuous efforts of the Director General (I&I), IR.
Sources said the future plans for bringing the potential taxpayers into the tax net and tangible results in the form of revenues would be finalised under the revenue collection strategy. In this connection, an effective mechanism would be chalked out for reporting the progress of Director General (I&I), IR on a daily basis.
It has also been decided that one recovery officer should be placed at the disposal of every Broadening-the-Tax-Base (BTB) unit so that the demands created are liquidated swiftly. The income tax demands raised against the newly discovered taxpayers would be recovered without any delay with the help of the BTB recovery officers. The Chief Commissioners of the Regional Tax Offices would strengthen their BTB units by providing sufficient officers and staff so that the average load over a BTB unit is rationalised for its qualitative improvements.
DG (I&I), FBR would make more vigorous efforts for enhancing his thrust of recovering the illegally claimed inputs of the taxpayers whose cases have been assigned to him for the purpose. Before the Board-in-Council, DG (I&I) FBR expressed his firm commitment not only towards recovering the already unearthed illegal inputs but making more efforts to uncover the further links to these illegal inputs.
At the same time, FBR Member Taxpayer Audit shall pursue the cases of illegal inputs unearthed and to ensure the creation and collection of the amount of revenue he committed out of this source. FBR Member Taxpayer Audit will make a presentation to the Board dilating therein his action plan in respect of meeting his commitment of revenue collection of Rs 84 billion up to June 30, 2012.