Finance Minister Ishaq Dar has been reportedly informed by tax authorities that the projected revenue collection of the Federal Board of Revenue (FBR) would fall short of the thrice downward revised target by Rs 30 billion. Optimistic estimates project total collections at around Rs 2575 billion for the current fiscal year against the revised target of Rs 2605 billion.
Sources said that the expected shortfall even in downward revised revenue collection target for current fiscal year necessitated an urgent meeting between Finance Minister Ishaq Dar, Secretary Finance Dr Waqar Masood and FBR Chairman Tariq Bajwa to discuss current pace of revenue collection and expected collection in the remaining four days of outgoing fiscal year.
The meeting was held at the Ministry of Finance and lasted over an hour. Discussion focused on ways and means to achieve the revised target - considered critical for the next International Monetary Fund (IMF) review under Extended Fund Facility (EFF). An official said that Finance Minister was informed that so far FBR has been able to collect Rs 2,464 billion and the last four days of the current fiscal year are unlikely to generate tax collections that would meet the revised target. Tax authorities have to collect Rs 111 billion in the remaining four days of the current fiscal year. The FBR has provisionally collected Rs 254 billion in June 2015 against the assigned target of Rs 395 billion. Major collection is expected on Monday and Tuesday (June 29-30) as Saturday/Sunday would be lean days though tax offices would remain open for collection.
The government had fixed FBR''s budgetary target at Rs 2,810 billion for 2014-15 which was revised downward to Rs 2,691 billion and further slashed to Rs 2,605 billion. The FBR contention was that revenue collection target was revised downward due to a decrease in global oil prices as well as decline in productivity of manufacturing sector which are major contributors to revenue.
They said the decline in oil prices seriously impacted on revenue collection during 2014-15. Oil and gas sectors are the major revenue spinners, but a revenue loss of around Rs 205 billion has been witnessed on account of decrease in POL prices and other factors. The international commodity prices have shown a major decrease during current fiscal year. The growth in Large Scale Manufacturing (LSM) was estimated at 7 percent at the time of budget (2014-15). The actual growth of LSM was 2.5 percent against target of 7 percent. The FBR had projected 13 percent growth in sales tax collection during 2014-15 but actual growth was only 5 percent.
A statement of Finance Ministry here on Friday said the Federal Minister for Finance Senator Mohammad Ishaq Dar chaired a meeting with Chairman FBR Tariq Bajwa and other senior officers of FBR. The Minister appreciated the FBR team on its hard work and tireless efforts for collection of revenue during the fiscal year 2014-15.The Minister also lauded their contribution regarding preparation of budget which he said was a wonderful team effort.
The Minister on this occasion emphasised that the last days of June were important in achieving the revenue target for the current fiscal year by FBR and all out efforts should be made in this regard. The Minister said that the government has tried its best to accommodate the suggestions and recommendations of all the stake holders in finalising the budget 2015-16 and focused on the well being of the most deserving and needy segments of the society. Chairman FBR thanked the Finance Minister for the appreciation and assured him that his team would try its level best to achieve the revenue target. The meeting was attended by the senior officials of Finance Division and FBR, it added.
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