Revenue target may be raised to Rs 1,350 billion

[Naveed Yaseen]

ISLAMABAD (November 04 2008): The government may revise upward the revenue collection target of Federal Board of Revenue (FBR) from Rs 1250 billion to Rs 1,350 billion for 2008-09. Sources told Business Recorder on Monday that the board is likely to enhance the revenue collection targets for Large Taxpayer Units (LTUs), keeping in view the possible increase in tax projections, from Rs 1250 billion to Rs 1350 billion, during 2008-09.

A meeting of LTUs Directors-General was held here to chalk out a comprehensive strategy for achieving revenue collection target. The main agenda of the meeting was to devise an effective plan for achieving the revenue budgets assigned to each LTU. As LTUs are dealing with all leading multinational companies, corporate entities and business establishments, there is need to primarily focus on LTUs for improving revenue collection.

In case the revenue target is enhanced to Rs 1350 billion, the major role in achieving the upward revised target would be the large taxpayer units. The meeting discussed ways and means to improve revenue collection during the remaining months of the current financial year. The meeting was also informed that FBR would convey the parameters for selection of cases for audit in the next one or two days to LTUs DGs for effective audit under section 177 of the Income Tax Ordinance 2001.

Sources said that the major chunk of revenue would be coming from large taxpaying units, for which effective enforcement measures are needed to be implemented. The Directors-General of LTUs also submitted information about large taxpaying companies to Member, DT, with particular focus on sectoral analysis. The data from major revenue spinners was also discussed in the meeting.

Meanwhile, customs officials told this scribe that duty collection was ahead of the target during the current year. However, the customs department has not yet conveyed any upward revised targets to the Model Customs Collectorates (MCCs).

In view of satisfactory performance of customs collectorates, the FBR may upward revise the target in the remaining months of current fiscal year.

On sales tax side, collectors of sales tax have not yet received any upward revised sales tax projections. The increased revenue collection on sales tax side has enabled the board to meet the monthly targets.

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