Meeting 2010-2011 target: FBR required to collect over Rs 871 billion in five months

The Federal Board of Revenue (FBR) has to collect over Rs 871 billion in the remaining five months of current fiscal year 2010-2011 to meet the downward revised revenue collection target of Rs 1,607 billion. In case the revenue collection target is further revised downward to Rs 1,580 billion, the tax machinery would have to collect Rs 844 billion for meeting the expected reduced target for fiscal 2010-11.
In the budget, the original target was fixed at Rs 1,667 billion which was revised downward to Rs 1,607 billion and further reduction to Rs 1,580 billion is expected in view of the current slow down of the economy and law and order situation.
It is learnt that the FBR has provisionally collected Rs 75.95 billion up to January 24, 2010. The Board has to collect Rs 47.06 billion to meet the monthly revenue collection target of Rs 123 billion for January 2010. The tax managers are confident to reach the figure of Rs 123 billion by the end of January 2010.
The provisional tax collection during July-January of the current fiscal year would reach Rs 783 billion if the collection target of Rs 123 billion for the month of January is met. Sources told Business Recorder on Tuesday that the provisional tax collection stood at Rs 736.35 billion during July-January (up to January 24) of 2010-11 against Rs 658.67 billion in the corresponding period last fiscal, showing an increase of 11.8 percent. The revenue collection would further improve following compilation of figures in the last one week of the current month.
According to the break-up of revenue collection, the Board has provisionally collected Rs 264.22 billion as direct taxes during July-January of 2010-11 as compared to Rs 238.19 billion in the same period of last fiscal, showing an improvement of 10.9 percent. The sales tax collection stood at Rs 316.48 billion during July-January (up to January 24) of the current fiscal against Rs 276.74 billion in the corresponding period of last fiscal, reflecting a growth of 14.4 percent.
The sales tax collection at the import stage was Rs 160.32 billion, whereas sales tax collection on domestic consumption was Rs 156.16 billion during first seven months of current fiscal. The provisional collection of Federal Excise Duty (FED) stood at Rs 65.7 billion during July-January of 2010-2011 against Rs 63 billion in the corresponding period of last fiscal, depicting an increase of 3.3 percent.
The data further revealed that the provisional collection of customs duty amounted to Rs 89.9 billion during July-January of 2010-2011 against Rs 80.12 billion in the corresponding period of last fiscal, showing an increase of 12.2 percent. The FBR has paid refunds and rebate to the tune of Rs 53.85 billion against Rs 38.12 billion in the same period last fiscal, reflecting an improvement of 58.2 percent. On the direct taxes side, the FBR has paid Rs 20.41 billion as refund during the period under review as compared to Rs 25.29 billion, showing a decrease of 19.3 percent.