‘FBR pays Rs34 billion refund to taxpayers’

ISLAMABAD: The Federal Board of Revenue (FBR) has paid back Rs34 billion to thousands of taxpayers’ in shape of tax refunds on account of Sales Tax, Income Tax and Federal Excise Duty as well as rebates on Customs Duty during the outgoing month (August 2017).

After paying back stuck up refunds of Rs26 billion for thousands of taxpayers as well as paying rebates of Customs Duty for exporters to the tune of Rs6 to 8 billion during the outgoing month (August 2017) now the possibility of achieving desired monthly target of Rs240 billion seems highly ambitious and unachievable.

“We will cross Rs200 billion plus revenue collection figures against the fixed target of Rs240 billion as it will be re-adjusted accordingly keeping in view payment of refunds and rebates to the tune of Rs34 billion,” said the official sources.

Ironically, the FBR has found that the previous management had allegedly taken advances from hundreds of potential taxpayers and even the incumbent team did not possess full details about advances taken by the previous management.

“One international airline and one bank did not pay taxes in July 2017 and when inquired to ascertain its reasons it came into the knowledge of the FBR high-ups that the FBR took up advances up to December in one case and in second case they took up advances for whole FY 2018,” said the official sources.

Now the FBR team is busy for ascertaining full details about advances taken by the FBR and so far it’s confirmed that the last fiscal year collection was actually around Rs3200 billion instead of Rs3362 billion.

“Without ascertaining exact figures, the FBR cannot devise its strategy to achieve highly ambitious and challenging annual tax collection target of Rs4013 billion for fiscal year 2017-18 which was approved by the Parliament,” said the official. 

The FBR had collected over Rs200 billion in first month (July 2017) of the current fiscal year 2017-18 against a collection of Rs164 billion in the same month of the last financial year 2016-17, registering a growth of over 20 percent.

Pakistan’s fiscal woes were bound for worsening as the FBR would not be able for achieving highly ambitious tax collection target of Rs4013 billion for current fiscal year mainly because of low base in last fiscal where the reconciled tax collection figure stands at only Rs3362 billion. Now it is proved that even revenue figure of Rs3362 billion is inflated one, added the official.

The FBR had envisaged tax collection target of Rs4013 billion for 2017-18 on the basis of projected figure of Rs3521 billion for the last fiscal year 2016-17.

In the wake of low base collection standing at Rs3362 billion, the FBR will have to fetch collection by achieving growth of over 20 percent instead of 15 percent for displaying the desired target of Rs4013 billion for fiscal year 2017-18.

“If the FBR does not reduce its tax collection target then the tax machinery will have to take additional taxation measures or putting its house in order for achieving highly ambitious target in a fiscal year when political uncertainty is likely to persist over the political scenario of the country,” added the official.