ISLAMABAD: After months of perseverance in the face of mounting difficulties at the revenue collection front, the government has revised downward the revenue collection target for the year 2016-17 by Rs 121 billion, bringing the original Rs 3,621 billion target to a seemingly more manageable target of Rs 3,500 billion.
This revision, attributed by the government mainly to what it calls a “growth-oriented approach”, gives the Federal Board of Revenue a much needed cushion to work with greater vigour and energy to bring home as many as Rs950 billion in the next two months to achieve the revised target.
The current revenue stands at Rs 2,530 billion with a revenue growth of 19 per cent till the filing of this report. FBR or Finance Ministry didn’t make any announcement regarding tax revision decision. Finance Minister Ishaq Dar, however, mentioned FBR's target of 3,500 billion in his speech delivered in Charted Accountant's conference in Islamabad on April 29.
Prime Minister's adviser on Finance and Revenue Haroon Akhtar cited the policy decision taken at the prime minister’s level not to pass on the increase in oil prices in international market to consumers as a reason for Rs 100 billion decline in FBR revenue. Then Kissan Package reduced tax collection from Rs15 to 20 billion, he said, adding that pesticides were declared duty free causing a further loss of Rs5 to 7.5 billion.
Export-oriented sectors used to be a source of Rs15 to 20 billion but it was declared GST free, he said. Then in order to facilitate students and researchers computer import was exempted of GST. He thinks FBR would meet the revenue target by controlling massive tax evasion in Pakistan.
