The provisional revenue collection has surpassed Rs 120 billion during first month of current fiscal (2013-14) as compared to Rs 109 billion during the same period of last fiscal year, reflecting an increase of 10 percent. Official sources told Business Recorder on Tuesday that the updated figures of revenue collection showed further growth of 10 percent when compared with previous fiscal year.
On July 30, the collection amounted to Rs 120 billion as compared to Rs 96.3 billion reported on July 29, 2013. In one day, there is a major increase of Rs 23.7 billion as reported by the FBR's data compilation system, which is healthy sign and shows the hard work of the concerned staff.
The Federal Board of Revenue (FBR) has witnessed jump in revenue collection during the last 1-2 days following streamlining of revenue reporting system of Pakistan Revenue Automation Limited (PRAL). The revenue reporting system has been improved through timely reporting and reconciliation of data. Through accurate mechanism of revenue receipts, the revenue collection is expected to further increase in the next 1-2 days.
All taxes have performed well till July 30 with 30 percent growth in income tax collection during July 2013 when compared with the corresponding period of last fiscal. It augurs well for the tax machinery that the provisional revenue collection has crossed Rs 120 billion during July 2013, official added. When asked reasons for sudden jump of Rs 23.7 billion in one day (July 30), official explained the authenticity of the foolproof 'Cash Reporting System' and 'Reconciliation Reporting System' having minimum margin of adjustment in reporting of revenue collection figures of the FBR. The online cash reporting system has already been successfully working which is linked with State Bank of Pakistan and National Bank of Pakistan systems. During the last 1-2 days, some revenue was not timely reported nor reflected in the main system of the FBR. Now, all revenue in pipeline has been reported till June 30.
Under the existing arrangement, the FBR provisionally compile figures of 'Cash Reporting System' and later the figures have been duly reconciled with the system of the Accountant General of Pakistan, State Bank of Pakistan and National Bank of Pakistan. There is a no chance of variation in the provisional revenue reported through the 'Cash Reporting System' and reconciled with the 'Reconciliation Reporting System'.
Official further said that the 'Cash Reporting System' works on daily basis which is based on the cash deposited in banks. The 'Cash Reporting System' is basically provisional reporting of cash on net basis. The banking sectors transactions of SBP and NBP of all domestic taxes have been captured under the 'Cash Reporting System'. It is a live electronic system which has been reporting provisional figures on net basis.
The second system is the Electronic System which collects import related data of customs duty, sales tax, Federal Excise Duty (FED) and withholding tax through various sources including Pakistan Automated Customs Computerised System (PACCs) and Web-Based one Customs System (WeBoc). The revenue collection at the import stages through the electronic system has been made part of the 'Cash Reporting System'. After one month lag, the FBR's Directorate of Research and Statistics reconcile revenue collection data with the AGPR, SBP and NBP and verify adjustments. The FBR figures are being verified by the AGPR which is a second check on the FBR revenue collection system, the official added.