Rs 77 billion net collection in 27 days of July

The net revenue collection by the Federal Board of Revenue (FBR) during first 27 days of July 2011 stood at Rs 77 billion, against Rs 84 billion in the corresponding period of last fiscal year, reflecting a decrease of Rs 7 billion. Sources told Business Recorder here on Tuesday that Rs 77 billion was net revenue collection of the Board, based on net revenue reported by the Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs) during the period under review.
It is expected that the provisional revenue collection would reach around Rs 95-100 billion in coming days. In the present economic situation and slowdown of business activity in major business hub of Karachi, the expected revenue collection would touch approximately Rs 100 billion in July 2011.
As far as monthly targets for 2011-12 are concerned, the FBR will communicate the month-wise revenue collection target to the field formations. According to sources, the FBR will also fix 2011-12 net targets for field formations. The FBR has revised the format of the ''revenue collection chart'' for the LTUs and RTOs to ensure reporting of only net revenue collection figures. From now onwards, the field formations would only report net revenue collection under the new ''revenue collection chart''.
The field formations would report net income tax, sales tax and federal excise duty figures, without mentioning any gross amount. Thus, the FBR has withdrawn the decision of a past Chief Commissioner Conference to report gross revenue collection. This would avert any kind of confusion regarding gross or net revenue collection in the future.
The FBR will only report net revenue collection to the Ministry of Finance, on regular basis. There is no need to report gross revenue collection figures to the Ministry of Finance, sources added. It is important to mention here that former FBR Chairman had reportedly directed the field formations in the Commissioners conference in September 2010 to report gross revenue collection to ensure payment of refunds to the taxpayers. Following the decision of the Commissioners conference, the field formations had reported gross figures to the Board in the past.