LAHORE: A revenue shortfall during the months of December and January has panicked the Federal Board of Revenue (FBR), as not only the field formations would observe normal working hours on Saturdays from February 12 onwards but directions for extended working hours are being issued on every second day to achieve budgetary targets, said sources.
Office orders, copies available with Business Recorder, one after another suggest that the Board was perturbed over the decline in revenue targets despite the fact that the overall revenue has exceeded the target during the first half of the current fiscal year.
Also, the Board has transferred a good number of commissioners countrywide, followed by a Board meeting on Wednesday for further transfers of deputy and assistant commissioners to ensure the achievement of revenue target ahead. A detailed mid-year review was carried out in the meeting. Sources said the anticipated shortfall of Rs 600 billion to Rs 5.2 trillion against the actual target of Rs 5.8 trillion is expected in the overall revenue target by June-end.
However, some other sources have disagreed with the impression, saying the anticipated revenue shortfall is merely a calculation based upon the revenue shortfall registered during the months of December and January. They said the prime reason behind a shortfall was a glitch in the national sales tax return, which led to the inability of taxpayers to file their returns and pay their dues. Besides, they added, a delay in tabling of the finance (supplementary) bill 2021 in National Assembly, creating confusion in business circles and eventual delay in major business decisions.
According to these well-placed sources, the Board may fill the budgetary gap in case it allows the taxpayers file their sales tax returns on the old module until the glitches are removed in the newer version. So far as widespread postings and transfers are concerned, they said most of the Board members have started making changes after completing first six months in their offices respectively. They have further pointed out that the Saturdays would again be declared as off-day from early next fiscal year.
The sources said most of the revenue shortfall has been witnessed under the head of sales tax while a minor component belongs to income tax. Meanwhile, the sources have also pointed out that the Board has launched a campaign for collecting advance tax from leading companies. It has also issued verbal directions that the taxpayers should pay against the current demands to meet the revenue gap. Also, they said, revenue is being generated out of fake demands and exemptions to meet the revenue target. They said the ongoing campaign would continue until March-end.
Copyright Business Recorder, 2022
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