Tax revenue: First quarter collection stands at Rs352b

Target likely to be met when final figures come in.

ISLAMABAD:

Tax authorities are likely to achieve the revenue target for the first quarter of the current fiscal year as they have already bagged Rs352.5 billion, a healthy increase of 27 per cent compared to the corresponding period of last year.

According to provisional statistics up to September 29, the Federal Board of Revenue (FBR) has already collected Rs352.5 billion, which is Rs74 billion more than last year’s figures, said Riffat Shaheen Qazi, FBR’s Member Facilitation and Taxpayer Education.

With last day’s tax figures yet to be compiled, the FBR needs only Rs10 billion to achieve the first quarter (July-September) target.

Qazi said the healthiest growth was registered in income tax collection, which stood at Rs115.2 billion, an increase of 34 per cent against the same period last year.

This year, the FBR needs to achieve a growth of 25 per cent from previous year’s total tax collection of Rs1,550 billion to meet the ambitious target of Rs1,952 billion. If the first quarter target is met, this will come to 18.5 per cent of the annual figure.

In September, sales tax collection was Rs170 billion, a rise of 31 per cent over the previous year. Though a breakdown showing sales tax collection at domestic and import stages was not available, last two months’ trend indicates a strong growth at the import stage.

Tax experts are of the view that this trend is worrisome which requires the intervention of authorities. Collection at domestic stage is falling below even nominal economic growth rate that comes to over 15 per cent.

Customs duty collection stood at Rs39 billion, showing a growth of 10 per cent. Under the head of federal excise duty, the FBR generated Rs28.3 billion, which was 11 per cent more than last year.

Published in The Express Tribune, October 1^st,  2011.