Govt asked to reduce tax collection target

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ISLAMABAD: Tax authorities have asked the government either to further revise the tax collection target downwards from Rs2,126 billion to Rs2,072 billion or approve additional measures, including reward schemes for the staff to enforce tax laws in an effective manner against 0.3 million tax evaders, sources said. Further revision of the tax collection target is quite crucial as the International Monetary Fund (IMF) mission is likely to visit Islamabad during the third week of the ongoing month.

Although, the IMF has indicated it will visit Islamabad after April 21 but the caretaker government’s indecisiveness in appointing a finance minister might delay the visit, the sources said. The government had envisaged the tax collection target of Rs2,381 billion for 2012-13, which was revised down to Rs2,126 billion by the finance ministry. If the government approves of this plan, this will be the second time the tax collection target will be revised downwards.

“We have informed the finance ministry that tax collection would definitely touch Rs2,058 billion and we can touch revenues of Rs2,072 billion with a little effort,” official sources told The News.

When contacted, FBR Senior Member Inland Revenue (IR) Asrar Raouf said that the tax collection target stood at Rs2,193 billion provided the government approved the tax amnesty scheme.

If the government did not approve the amnesty scheme, then it will cause reduction of Rs80 billion and the tax collection can be jacked up to Rs2,110 billion, he said. He said that the FBR has decided to send notices to 0.3 million tax evaders in the country who are residing in the main cities of the country. “We have developed a software to monitor tax notices to 0.3 million potential nonfilers in an effective manner,” he said.

The FBR had so far collected Rs1,346 billion during July-March of the current fiscal year against a collection of Rs1,266 billion during the same period last fiscal year, registering an increase of 6.3 percent.

In March, the FBR collected Rs184.315 billion as compared to the collection of Rs155.885 billion in the same month last fiscal year, indicating a growth of 18.2 percent. The FBR netted an additional Rs14 billion through the amnesty scheme for vehicles and textile sector, which helped it in achieving impressive growth.

“Our collection for March will be crossed up to Rs190 billion till the finalisation of the revenue figures as provisional collection stands at Rs184 billion,” FBR’s Member IR (operation) said. The FBR also issued refund worth Rs4 billion in March against the issuance of refunds of Rs7 billion during the same period last fiscal year.

 

Courtesy: The News


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