Taxation and relief measures: Net revenue impact to be over Rs31.772bn

RECORDER REPORT

ISLAMABAD: The net revenue effect of the taxation and relief measures would be over Rs 31.772 billion during 2012-13. Giving a technical briefing on budget (2012-13) at the Federal Board of Revenue (FBR) House here on Friday, FBR Member Inland Revenue Shahid Hussain Asad explained the aggregate revenue effect including sales tax, income tax, customs duty and federal excise duty for the next fiscal year.

The FBR Member IR said the FBR has provided relief to the tune of Rs 1.228 billion through tariff rationalization and relief to business and trade community. On the customs side, no rate of duty has been enhanced, but duties have been brought down to provide relief to the general masses. Sales tax and federal excise measures would provide relief of Rs 5.50 billion. Sales tax and excise measures would generate Rs 29 billion. The net revenue impact of sales tax and federal excise is Rs 23.50 billion. The income tax measures would give relief of Rs 24.5 billion to the business community and general masses. The income tax measures of Rs 34 billion have been taken to generate additional revenue during 2012-2013.

The total taxation measures would generate Rs 63 billion revenue and relief measures would be Rs 31.220 billion, reflecting net affect of Rs 31.772 billion in 2012-13.

He stated that the federal government has fixed Rs 2381 billion revenue collection target for the FBR. The Ministry of Finance has fixed the target in consultation with the FBR's team of tax managers. The FBR will take administrative and enforcement measures to generate additional revenue during next fiscal. The FBR will recover an amount of Rs 136 billion through sales tax, income tax and federal excise duty arrears. The amnesty scheme has already generated an amount of Rs 10 billion. The FBR has provisionally collected Rs 1631 billion during July-May (2012-13) inclusive of Rs 21 billion collected by the Sindh Revenue Board (SRB). During the month of May 2012, the FBR has provisionally collected Rs 188 billion. The collection in May would reach Rs 190 billion. The FBR is making efforts to meet the revenue collection target of Rs 1952 billion by the end of current fiscal year.

Responding to a question, Shahid Hussain Asad said there is no change in the corporate income tax rate. Moreover, the rate of the federal excise duty on sugar has not changed. There is no increase in the rate of the FED on sugar.

He said Capital Gains Tax (CGT) on stock market has been made part of the Finance Bill (2012-13).

About any change in the duty structure on cars, FBR Member IR said that there is no change in the duty structure of cars.