Taxation measures yield Rs 30.4 billion in July-January

The taxation measures announced in budget (2010-11) generated an amount of Rs 30.4 billion during July-January (2010-11) against the projected figure of Rs 83.3 billion, reflecting a shortfall of Rs 52.9 billion.
Sources told Business Recorder here on Thursday that the Federal Board of Revenue has carried out analysis of the budgetary measures taken at the start of fiscal 2010-11 to check whether the revenue measures on direct and indirect taxes side have achieved the desired results or not. The FBR analysis, titled, ''assessment of taxation measures-March 2011'' would also guide the FBR to determine whether new taxes have generated revenue or resulted in shortfall pertaining to sector/industry.
At the time of announcement of budget (2010-11), the total net impact of taxation measures and administrative/enforcement efforts of the FBR were estimated at around Rs 133.232 billion for fiscal 2010-11. Out of total Rs 133.232 billion aggregated revenue impact, the revenue measures of over Rs 83 billion were taken in the budget. The FBR analysis disclosed that the FBR has to collect Rs 52.9 billion from Feb. to June of the current fiscal year to meet target of Rs 83.3 billion through taxation measures taken in last budget.
The FBR analysis on budgetary measures revealed that the new taxes imposed on direct taxes side generated an amount of Rs 15.3 billion during July-January (2010-11) against the annual projected figure of Rs 32.5 billion. The taxation measures on the sales tax side generated Rs 11.5 billion during this period against the projected figure of Rs 30 billion.
The FBR has suffered a serious setback in generating maximum revenue from the excisable commodities as compared to the projected amount under the new taxation measures. The new tax measures of the federal excise duty have estimated to generate around Rs 21.5 billion during 2010-11. Contrary to this, total collection of the FED from excisable commodities stood at Rs 3.6 billion during July-January (2010-11).
The FED collection showed that the FBR is lagging behind Rs 17.9 billion against the projected figure of Rs 21.5 billion with the new tax measures. The shortfall of Rs 17.9 billion clearly reflects that there might be some serious miscalculations while working out FED target through excisable commodities.
On the customs side, the FBR has estimated revenue decrease of Rs 0.7 billion following tariff rationalisation in budget 2010-11. The FBR had not increased customs duty on any item during last budget. On the other hand, the administrative measures on the customs side were estimated to generate an additional Rs 50 billion in 2010-11 by checking smuggling, under-invoicing and applying accurate valuation rulings. Despite reduction in customs duty in budget 2010-2011, the total collection of customs duty was Rs 94.5 billion in July-January (2010-11) against the target of Rs 92.8 billion, reflecting 101.8 percent achievement of the set target.