First half target: FBR needs to collect Rs 102 billion by December 31

The Federal Board of Revenue has to collect around Rs 102 billion by December 31, 2010 to meet the first half (July-December) target of Rs 652 billion for current fiscal year. Sources told Business Recorder here on Tuesday that the revenue collection has touched around Rs 550 billion by the end of second week of December 2010 and the FBR is required to collect Rs 652 billion in the first half (July-December) of 2010-11.
The revenue collection target for the July-November 2010-11 was fixed at Rs 505 billion and FBR has managed a provisional collection of Rs 500 billion by the end of November 2010. The FBR has been assigned a tax collection target of Rs 147 billion for December 2010 and provisional collection for this month has reached Rs 50 billion by the end of second week of this month.
Sources said that a number of public holidays in December may result in comparatively less revenue collection. Each public holiday have its own negative revenue impact and many public holidays in the month of December would negatively impact the collection during the period under review.
Sources said that the revenue impact of delay in the passage and enforcement of reformed general sales tax (RGST), Flood Income Tax Surcharge and increase in Special Excise Duty from January 1, 2011 comes to around Rs 82 billion. There is non-availability of around Rs 82 billion altogether that was to be realised through the imposition of RGST, Flood Surcharge and increase in SED. These funds would no longer be available to the government from January 2011 onwards. According to estimates, around Rs 30 billion were to be realised through imposition of RGST, Rs 40 billion from Income Tax Surcharge and increase in Special Excise Duty was targeted to generate around Rs 12 billion during January 1, to June 30, 2011.
The revised revenue collection data for 2010-2011 revealed that the target of direct taxes was revised downwards from Rs 663 billion to Rs 658 billion, sales tax target is being kept at Rs 675 billion, Federal Excise Duty collection target at Rs 154 billion and customs duty target would remain at Rs 181 billion despite upward revision in final tax collection target by Rs 22 billion for the ongoing fiscal year 2010-11.
However, delay in the enforcement of RGST, surcharge and increase in the SED from January 1, 2011 would result in downward revision in the tax collection target accordingly. Following delay in the enforcement of RGST, flood surcharge and increase in the SED would result in lower collection of federal taxes during the ongoing fiscal.