The government is expected to take new taxation measures ranging between Rs 220 billion and Rs 225 billion including administrative measures worth Rs 15 billion in 2015-16 for fixation of revenue collection target in the proximity of Rs 3,000 billion to Rs 3,100 billion for next fiscal year. Sources told Business Recorder here on Tuesday that so far budgetary measures taken in 2014-15 generated revenue of Rs 137 billion excluding imposition of regulatory duty and enhancement in sales tax rates on petroleum products during current fiscal year.
As per initial estimates, the new taxation may be up to Rs 220-225 billion for 2015-16. The net impact of taxation and relief measures would be worked out which may be over and above Rs 215 billion. The budget markers are also analysing the total collection from the budgetary measures taken in budget 2014-15. Depending on the new taxation measures, the target could be within the vicinity of Rs 3,000 billion and Rs 3,100 billion for 2015-16. The macro economic indicators like Gross Domestic Product (GDP), Large Scale Manufacturing (LSM), imports, inflation and other indicators would dully be taken in account before finalisation of the revenue projections for 2015-16.
In this regard, the Ministry of Finance has received different scenarios from the FBR for finalisation of the revenue collection target for next fiscal year. The new revenue collection target would be set keeping in view the downward revised target of Rs 2691 billion for 2014-15. The revised revenue collection target for last quarter (April-June) of current fiscal year has been set at Rs 900 billion. Any shortfall in revenue collection will erode the base of Rs 2691 billion for setting new tax projections for 2015-16.
At present, the Federal Board of Revenue (FBR) is working out the revenue impact of Statutory Regulatory Order (SROs) to be withdrawn in budget (2015-16). The next meeting of the committee to review the concessionary regime would be held on Thursday (April 30).
In last budget, the government had taken taxation/administrative measures of Rs 246.255 billion. The revenue generation measures of Rs 231.255 billion and administrative measures of Rs 15 billion were taken last year. In total, the taxation and administrative measures were Rs 246.255 billion.
The FBR had taken relief measures of Rs 12.040 billion. Out of Rs 231.255 billion new taxation measures, direct taxes measures of Rs 149.200 billion were taken in budget. Sales tax and federal excise duty measures totalled at Rs 47.700 billion. The taxation measures of customs duty totalled at Rs 34.356 billion in 2014-15. The relief measures taken on the customs duty totalled at Rs 1.740 billion; sales tax Rs 2 billion and relief measures of income tax stood at Rs 8.3 billion for 2014-15.