WEDNESDAY JANUARY 25: MoF advises FBR to adopt cautious approach: analysis of revenue collection figures

ISLAMABAD: The Ministry of Finance has directed the Federal Board of Revenue (FBR) to adopt a cautious approach while analysing revenue collection figures to come up with actual figures compiled through FBR's administrative and enforcement action during 2011-12.
Sources told Business Recorder here on Tuesday that the FBR has also started implementation of the strategy to daily report to the Ministry of Finance about the figures of registered taxpayers and the number of taxpayers who actually pay taxes. During the last meeting of the Tax Reform Co-ordination Group, Finance Minister Dr Abdul Hafeez Sheikh, while commenting on the collection performance of FBR, advised the tax authorities to adopt a cautious approach while analysing revenue collection figures. He emphasised that collection figures may be segregated to ascertain how much revenue collection relates to exchange rate fluctuations, impact of policies, fluctuations in commodity pricing and FBR's own efforts.
The Finance Minister also asked the FBR Chairman to form a group of officers to report daily figures of registered taxpayers and the number of tax payers who actually pay taxes. He wanted to be apprised of the situation daily with a preliminary report within forty eight hours. The Finance Minister also asked the FBR to be apprised of the progress made for disposal of all refund cases so far and the reasons for delay, if any. He asked to be apprised about the motivation level of the work force of FBR in the wake of reforms.
He directed the FBR to present the following data in the next meeting of the TRCG: The FBR will give analysis of non-filers and strategy to pursue enforcement plan in the field formations. The FBR will also give detailed analysis of 295,000 notices sent and daily update of lists. The status of the remaining notices to be issued including details of people to be documented.
The Finance Minister has also directed the FBR to present the operational plan of the capital gain tax (CGT) on stock exchanges. The FBR will also give collection analysis chart. It would cover windfall due to other people decision (fertiliser import; sugar import: circular debt), FBR's own efforts and impact of exchange rate fluctuation on revenue collection. The FBR will also present the detailed review of six months collection during July-December 2011-12 and forecast for next six months including details of monthly target. The FBR will also present the preliminary tax proposals to the Finance Minister in the next meeting of the TRCG, sources added.