ISLAMABAD: Even after revising the revenue target twice, it has become apparently an impossible task for Federal Board of Revenue to collect Rs2,275 billion by the end of the current fiscal year. The latest data availed by Customs Today revealed that until June 6, 2014, FBR had collected merely around 1,967 billion rupees.
FBR authorities are now expecting that by June 30 this year, no more (or even less) than Rs 2,200 billion can be collected. The campaign to collect advance income tax to increase revenue collection was supposed to be started by June 2. However, due to some reasons the campaign has not started yet.
On the brighter side, despite all the odds FBR has generated 15 per cent more revenue than the previous fiscal year for the same duration. This shows an improved performance by the central revenue body. There is an argument that the unrealistic approach of the federal government toward setting the revenue collection target has created all the troubles being faced by the revenue authority.
The taxes collected until June 6 comprise of Rs 744 billion in share of income tax; Rs 928 billion in share of sales tax; Rs 145 billion in share of federal excise duty; and Rs 211 billion in share of customs duty. Out of the total amount of Rs 2,028 billion, FBR is yet to refund Rs 61 billion which brings down the actual tax collection to Rs 1,967 billion. During the same period in the previous fiscal year, FBR had collected Rs 1707 billion out of which the Board owed Rs 83 billion in refunds.
It is significant to mention here that at the start of Fiscal Year 2013-14, the target for revenue collection was set at Rs 2,475 billion before it was revised down to Rs 2,345 billion. After that the target was once again revised in the light of appreciated value of Pakistani Rupee in international market and further brought down to Rs 2,275 billion in agreement with International Monetary Fund whose consultation was obligatory for the Extended Fund Facility (EFF) programme to continue.
Sources said that taking into consideration the existing situation, FBR authorities have asked the Finance Ministry to take a second look on the revenue target for the upcoming Budget i.e. Rs 2810 billion, before it is rectified by the Parliament.