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FBR surpasses target by Rs 2.46 billion

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Breaking all previous records of revenue collection, the Federal Board of Revenue has amassed Rs 1590.462 billion as net revenue during 2010-11 against the target of Rs 1588 billion, reflecting an enormous growth of Rs 2.462 billion. Addressing a press conference at the FBR House on Thursday night, FBR Chairman Salman Siddiq said the achievement of the target of Rs 1588 billion will clear the doubts about the continuation of the IMF programme.

"I want to share a national jubilation with the people of Pakistan about achievement of the assigned revenue collection target of Rs 1588 billion despite difficult prevailing economic situation. The revenue collection is expected to reach around Rs 1600 billion on compilation of final figures in coming days," he added.

Break-up of revenue collection revealed that the provisional revenue collection of Inland Revenue covering direct taxes, sales tax and federal excise duty (FED) reached Rs 1,406.462 billion during July-June 2010-11. The FBR has collected nearly Rs 185 billion as customs duty against the target of Rs 174 billion set for current fiscal. This collection is upto 10pm and till 12 night the collection would definitely go up on compilation of final figures. If we have missed the target by a friction, it would not be in the favour of the country.

Salman Siddiq stated that the apprehensions of the International Monetary Fund (IMF) have also been removed as the FBR has crossed the target by a big margin. There were many ifs and buts at local as well as international level that the FBR may not be able to achieve the assigned target. However, the net revenue collection of Rs 1590.462 billion shows that we have not only met but surpassed the target in billions of rupees. Now, the Pakistan is in a position to negotiate with the international donors in a better way. It is a national achievement and credit goes to the taxpayers, who timely discharge their national responsibility of paying due amount of taxes. He particularly mentioned names of FBR Member Inland Revenue Khawar Khurshid Butt and Additional Secretary Revenue Division Asrar Raouf who worked day and night to chalk out a viable strategy for achievement of the assigned target for 2010-11.

He said that the top government functionaries including Minister for Finance have given free hand to the tax machinery to work without any interference, which also played a key role in achievement of the target. The Finance Minister has declared on the floor of the house that if Salman Siddiq is confident of meeting the revenue target, it will be met. Thank God that the target has not only been achieved but has surpassed.

FBR Chairman was confident that the FBR will be able to meet the target of Rs 1952 billion set for next fiscal in view of documentation and broadening of the tax base exercise. We would be able to collect around Rs 106 billion during 2011-12 from taxation measures taken in March 2011.

About the position of the Tax-to-GDP ratio, Salman Siddiq stated that it figure of the Tax-to-GDP ratio depends upon the final figures of collection for 2010-11. If the FBR will be able to reach Rs 1600 billion the Tax-to-GDP ratio will reach 9.3 percent as compared to the existing figure of 9.2 percent. The target for the Tax-to-GDP ratio for next fiscal has been set at 9.6 percent.

Responding to a query on obtaining advances from private sector to achieve target, the FBR chairman categorically said that the FBR has not picked any advance from the private parties. I give guarantee that we have not taken any advances. "I will fool myself if we will do such kind of things," he remarked.

To another question, he said that the three provinces have authorised the FBR to collect sales tax on standalone services. However, Sindh has agreed to authorise FBR to collect sales tax on those services where input tax adjustment is involved. The FBR will collect sales tax on those services involving input tax adjustment or inter-provincial transactions.

He said that the fiscal deficit would be in the range of 5.2 percent of the GDP that would ensure revival of the IMF programme. The better management of expenditures and improved tax collection would enable the government to achieve the desired fiscal deficit target. On the expenditure side, there is excellent management has been shown by the concerned authorities, Salman Siddiq added.

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posted @ 11:50 AM,

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