Rs 40 billion recovery process under way: FBR registers 200 FIRs against wrong claimants

The Federal Board of Revenue (FBR) has registered around 200 FIRs against wrong claimants of input tax adjustments during the last few months, and recovery proceedings are underway against the fraudulent claimants.
Sources told Business Recorder here on Monday that the inadmissible amount of sales tax to be recovered, identified by the IT system is nearly Rs 40.5 billion including inadmissible input tax adjustment of sales tax Rs 24 billion and supplies made by blacklisted companies around Rs 16.5 billion.
During last few months, the FBR has registered nearly 200 FIRs against the wrong claimants of the input tax adjustments in Karachi, Lahore, Faisalabad and other cities. The recovery process is underway in different cases which would also improve sales tax collection. Around 200 FIRs have been registered from time to time against different fraudulent claimants of the input tax adjustment during past months. At the same time, recovery from the income tax demands raised against the taxpayers would also contribute in overall tax collection in the remaining months of 2010-11.
Sources said that the FBR would be able to surpass the downward revised revenue collection target of Rs 1588 billion by the end of June 2011 in view of sudden growth in sales tax on imports from petroleum (POL) products and improvement in other heads of collection.
The revenue collection position of the first 15 days of May have shown that the revenue collection in May is 7 percent higher as compared to the collection in the corresponding period of last fiscal year. The major improvement has been witnessed in the sales tax collection from POL products at the import stage.
The FBR data shows that the sales tax collection from the POL products has improved during May 2011 which would definitely have positive impact on the overall revenue collection position during the remaining months of current fiscal year. It is expected that around Rs 32-33 billion would be collected under the head of last instalment of the advance tax in June 2011 which would also improve revenue collection position, sources added.