Following the dull economic activities in the country, especially in Karachi, the Federal Board of Revenue (FBR) is contemplating the reduction in its revenue target by Rs 200 billion, approximately, Business Recorder learnt Thursday. According to sources, chief commissioners in recent conference had asked for reviewing the budget targets, which were presently considered to be formidable task to achieve during ongoing economic meltdown.
They said that chief commissioners had termed the revenue target for 2012-13 as unrealistic, saying that the revenue target, which was exaggeratedly allocated, should be rationalised to at least Rs 2 trillion. They said the revenue target could not be achieved as the major chunk of revenue 'tax on services' is now being collected by provincial authorities hence the target should be revised by Rs 200 billion, approximately. Chief commissioners were of the view that the unprecedented increase in annual revenue target was forcing the tax offices to initiate unnecessary activities for revenue generation that might tarnish the image of the revenue body, they maintained. The sources said the finance ministry was also urged to take the tax officials on board in the process of fixing annual revenue target.
Meanwhile, the tax experts while talking to this correspondent said the FBR has to ensure proper revenue generation exercises in their relevant quarters to attain the set mark, stressing the need of taking stern measures to generate revenue from recovery and arrears accounts.
They said the incumbent government despite facing severe financial challenges, due to high borrowing, excessive expenditures, high oil imports, etc, is keen in giving more tax relief in the wake of coming elections. They said the government has not only appeared unsuccessful to economise its running expenditures but also failed to attract foreign and local investments, causing an exorbitant increase in revenue target, which should be fixed at rational level.