FBR starts year with tax shortfall of Rs26b
A shortfall of Rs26 billion has been recorded in tax collection for the first month of the current fiscal year.
According to provisional figures, the Federal Board of Revenue (FBR) received Rs84 billion in net taxes during July against the target of Rs110 billion. The taxes collected are even less than the collection in July last year.
According to details, refunds of more than Rs44 billion were made during the month. Major part of refunds was in income tax which stood at Rs42.1 billion while sales tax refunds were Rs1.38 billion. A rebate of Rs0.55 billion was issued against customs duty.
FBR authorities said an increase is expected in collection for July as final results come in and tax receipts would reach somewhere between Rs90 and Rs100 billion.
No provisional figures
In order to avoid discrepancy in data, FBR has prohibited field formations including large taxpayer units and regional tax offices from sending provisional statistics and has asked them to provide final figures.
A senior FBR official told The Express Tribune that FBR Chairman Salman Siddique has taken serious notice of reporting provisional figures by field formations. He asked officials at the FBR headquarters to take action against the heads and other officials responsible for providing unauthenticated data.
According to the sources, appointments and transfers will be made in the light of the investigations.
Published in The Express Tribune, August 3rd, 2011.
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Chairman has to set the tone at the top.
Unless the FBR software is robust and there is direct connectivity between NBP , State bank and FBR there will continue to be misreporting.
I would like to know, why are targets being set for tax collection and what is the basis of setting these targets. The very basis of the target is faulty and un-reliable.
I am predicting, that the tax collection this year will be less than last year.