ISLAMABAD: The Federal Board of Revenue (FBR) has realized Rs1,269 billion tax revenue up to December 28, 2015 of the current fiscal year against the collection of Rs1,096 billion in the same period of the last fiscal, showing an increase of 16 percent, a senior official said on Tuesday.
Member Strategic Planning Reforms and Statistics and Spokesman of the FBR Muhammad Iqbal said the FBR has performed well in tax collection with over 16 percent increase in taxes so far as compared to the previous year.
The FBR spokesman said the final tax regime (FTR) is under consideration in the next fiscal year’s budget. He added that there is need to phase out the FTR for documenting the economy and bringing all the sectors in the normal tax regime.
Iqbal said no statutory regulatory order (SROs) was issued in the current fiscal year and no such measure was proposed to the high-level committee for further approval in the economic coordination committee of the cabinet. He said SROs issue was under discussion with all the stakeholders, including chambers of commerce and industry and the ministry of commerce and textile industry.
“Despite the huge challenges FBR’s tax collection is on track,” he added. Iqbal said FBR is committed to broaden the tax net to strengthen the economy and to enhance tax to GDP ratio in line with the policy of the government. “FBR collected an amount of 28 percent more in October, November and till the mid of December as compared to the same periods of the previous year,” he said. “The performance of FBR was very encouraging in the second quarter of the current fiscal year and figures show a 30 percent increase in tax collection.”
Iqbal said FBR is determined to issue notices to those non-compliant persons who have not filed their tax returns.
He said the FBR’s administrative reforms are gradually leading to improvement in tax structure and revenue collection.
“The reforms would continue to address the issue of tax compliance and administration.”
FBR spokesman said serious efforts are underway to bring FBR at par with the tax authorities of the developed countries for economic stability in the country.