Tax collection falls in April

ISLAMABAD:

Tax authorities have expressed concern that revenue collection has dropped despite last month’s revenue-generating measures including withdrawal of sales tax exemptions from some sectors and a sharp increase in special excise duty.

This was discussed in the Federal Board of Revenue (FBR)’s Board-in-Council meeting held here on Monday under the chairmanship of FBR Chairman Salman Siddique, where tax authorities cautioned that in April the revenue collection had actually declined.

The board underlined the need for taking measures for increasing tax collection, to which it was told that tax officials had sent notices to 52,000 non-filers to bring them into the tax net.

According to sources, the FBR chairman voiced concern over the fall in tax collection so far this month and asked officials to take all possible measures to meet April’s target. “If we face a shortfall of Rs30 to Rs40 billion this month, then it will be difficult to meet full-year target of Rs1,588 billion and it will also affect next year’s target,” he said.

Tax officials said that so far this month they had collected Rs89 billion, which was Rs7 billion less than Rs96 billion collected in the same period last year.

The FBR chairman asked the officials to recover taxes from areas where the amount was stuck and make efforts to end tax-related cases in courts.

Published in The Express Tribune, April 26^th, 2011.