Islamabad: The Federal Board of Revenue seems to be on course in failing to meet its revised revenue target of Rs3.521b till the 30th of June. It is expected that the FBR will only be able to collect Rs 3.421b resulting in a likely loss of Rs100b by the end of this financial year 2016-17.
According to FBR officials, the department was able to collect Rs2.86b in the 11 months of FY 2016-17. In order to meet its revenue target, the FBR would be expected to accrue Rs 561b in the month of June. It has been learnt that Rs170b losses have been caused to the national exchequer in lieu of reduction in petroleum prices, tax incentives on fertilizer, export packages etc. The reason for facing this shortfall has been partially attributed to the month of Ramazan, when the working hours tend to be predominantly less.
An FBR official said that the authority will increase valuation rates for 15 to 20 major urban centres in the first 10 days of July, start of the next financial year. He added that the withdrawal of zero rating for five export-oriented sectors is also on the cards, as the facility had been abused and misused by certain elements. It has come to the fore that these elements were seeking exemptions on packaged materials despite agreement to the contrary, the official stated.
The Finance Minister Ishaq Dar has issued instructions to the FBR for meeting its revenue costs at all costs in the current FY 2016-17. Dar said “The prudent policies of the present government, and the efforts of FBR, had resulted in 60 percent growth in tax revenue collection between FY 2012/13 and FY 2015/16.”
