Wrong reporting of tax collection: National Assembly body asks FBR to present realistic picture

National Assembly Standing Committee on Finance has taken notice of the wrong reporting of tax collection figures for fiscal year 2010-11, and directed the Federal Board of Revenue (FBR) to present the realistic picture of revenue collection, during last fiscal year, in its meeting to be held at Ministry of Finance here on Tuesday.
It is learnt that the committee is also expected to discuss in detail the revenue reporting system of the FBR and the situation which led to confusion in reporting of gross and net tax collection figures for 2010-11. According to the agenda of the meeting, the standing committee on Finance, to meet with Fauzia Wahab MNA in the chair, would consider "fudged figures of revenue collection in Finance Bill 2010-11 and Pakistan Coinage (Amendment) Bill 2010".
It is expected that the Ministry of Finance and Federal Board of Revenue (FBR) would explain reasons of wrong reporting of tax figures during 2010-11. The government had assigned the tax collection target of Rs 1667 billion to the FBR in the budget 2010-11. However, due to floods, law and order situation and overall economic slowdown, the target was downward revised to Rs 1605 billion.
The tax projections were thrice downward revised to Rs 1588 billion during 2010-11. On June 30, 2011, based on information provided by the Large Taxpayers Units (LTUs) and Regional Tax Offices (RTOs), the FBR had announced gross revenue collection of Rs 1590 billion for 2010-11. Following reconciliation of data between the State Bank of Pakistan (SBP) and the FBR, net revenue collection stood at Rs 1550 billion for 2010-11. The final figure of net revenue collection was Rs 1550 billion for 2010-11 against thrice downward revised target of Rs 1588 billion, showing a shortfall of Rs 38 billion. The net figure of Rs 1550 billion was calculated after payment of refunds and reconciliation of data during the period under review.