FBR evolves strategy to collect Rs300bn in June

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KARACHI: The Federal Board of Revenue (FBR) has formulated a strategy to collect Rs300 billion this month to reach at least the Rs2 trillion-mark in FY2012-13, after conceding that the target for the current fiscal year is not achievable, sources said on Monday.

 

The FBR had provisionally collected Rs185 billion in May 2013, which made the total at Rs1,695 billion in eleven months of the current fiscal year, an official at the FBR headquarters, said. The official added that the provisional collection for the month of May could further increase after the finalisation of data.

 

Sources said that the FBR had given up the hope to achieve the revised revenue collection target of Rs2,050 billion, which was already reduced several times from the initial estimate of Rs2,381 billion.

 

The latest strategy evolved to collect Rs300 billion is to reach the Rs2,000 billion-mark by June 30, another FBR official said.The revenue body collected Rs1,883 billion in 2011-12, in which Rs275 billion was collected in June 2012.

 

Sources said that in order to achieve Rs300 billion, collection of advance taxes will remain a major factor. They, however, added that the planned amnesty scheme concerning the waiver of default surcharge and penalty will be instrumental in reaching the desired mark.

 

An analysis of estimated collection in June 2013 under different heads included: advance tax Rs70 billion; withholding taxes Rs33 billion; through audit/scrutiny Rs50 billion; sales tax Rs60 billion; customs/imports Rs50 billion and federal excise duty Rs23 billion. The remaining amount is estimated to be collected under the amnesty scheme, which is likely to be announced by the FBR by the mid of this month.

 

As per FBR sources, the waiver of default surcharge and penalty under the amnesty scheme, will not yield more than Rs15 billion as most of the taxpayers had availed the opportunity to discharge their outstanding liabilities last year under a similar scheme.

 

FBR officials in local tax offices have suggested that the amnesty scheme be launched by June 10 so that taxpayers can take maximum numbers of days to make a decision, especially in litigated cases.

 

The government set the revenue collection target for FY2012-13 at Rs2,381 billion or 26 percent more than last fiscal year’s target, which the FBR officials termed unrealistic considering the reduction in tax rates in last budget, economic slowdown and decline in imports and inflation.

 

The officials at the local FBR offices said that the new government should set a target keeping in mind the economic situation and also focus on broadening the tax base as no major steps were taken in this regard during the outgoing fiscal year.




Courtesy:  The News


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