SATURDAY AUGUST 13: Wrong reporting of 2010-11 revenue collection: tax bosses asked to give explanation

ISLAMABAD: National Assembly Standing Committee on Finance and Revenue has taken a serious notice of the wrong reporting in the tax collection figures for the fiscal year 2010-11 and asked the tax bosses to explain the real situation in its meeting on August 18.
The Committee is also expected to discuss the circumstances which compelled Shahid Hafiz Kardar, State Bank of Pakistan (SBP) Governor, to resign from his post. According to the agenda of the meeting, the committee which met with Fauzia Wahab MNA in the chair, would consider figure-fudging of revenue collection in finance bill 2010-11 and the proposed SBP legislation on The Pakistan Coinage (Amendment) Bill 2010 and the Securities Bill 2010.
Official sources informed Ministry of Finance and Federal Board of Revenue (FBR) to explain to the members of the committee the reasons why the gross sales tax collection was reported for 2010-2011 instead of net figures for the period under review. The government had assigned the tax collection target of Rs 1.667 trillion to the FBR in the budget 2010-11.
However, due to floods, law and order situation and overall economic slowdown, this target was downward revised to Rs 1.588 trillion during the fiscal year. The government had also tasked the newly appointed Chairman, Salman Siddique, to ensure collection of Rs 1.588 trillion by June 30, 2011 so as to meet the one of the major performance benchmarks under $11.3 billion IMF Stand By-Arrangement. Earlier, the committee meeting was suspended which was scheduled in July.