Islamabad eyes Rs690 billion revenue collection target

ISLAMABAD — The federal government has decided to meet the revenue collection target of Rs690 billion set for 2005-06 by netting richer classes, who avoided paying their taxes.

By From A Correspondent

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Published: Sun 17 Jul 2005, 10:33 AM

Last updated: Thu 2 Apr 2015, 4:41 PM

The Central Board of Revenue (CBR) has decided to constitute special teams for identifying future potential taxpayers.

An official said that these teams would carry out desk audits of income tax returns filed for the tax year 2004 to identify taxpayers who have understated their income.

These teams would also be entrusted to review and cross match data collected from Wapda, PTCL, banks, automobile manufacturers and cellular phone service providers to determine people avoiding to pay taxes.

The decision was taken at the quarterly conference of regional commissioners of income tax, directors general of large taxpayers units and

commissioners of income tax here yesterday.

The conference was informed that the total revenue collection for the fiscal year 2004-05 amounted to Rs590.6 billion.

Chairman CBR Abdullah Yousef expressed the confidence that the figures would further improve after incorporating final tax collection figures.

Stressing the need to do more in this regard, he said: "We must not slacken in our efforts and continue with our job with the same enthusiasm to achieve the current financial year's target of Rs690 billion," he added.

"Our ultimate goal is to enhance tax-to-GDP ratio through broadening of tax base", he remarked.

Yousef advised the participants to evolve an implementable strategy to enhance the tax-to-GDP ratio.

The chairman told the conference that there would be only 0.2 per cent addition in the existing tax-to-GDP ratio of 9.0 per cent even if the revenue collection target of Rs690 billion for the current fiscal year was achieved.

"We, therefore, still have to go a long way to achieve the objective. He is of the opinion that we must also benefit from strategies and experiences of other countries who have successfully broadened their tax base in the recent past", he said.

Other decisions taken at the meeting included misuse of exemption certificates in cases of manufacturers, data entry for tax year 2004, data entry exercise for RTOs, updation positions of withdrawal of appeals from the Supreme Court, high courts and income tax tribunals and removal of infructious cases.

It was also decided that exporters of five zero-rated sectors could only get refund or adjustment against their duty paid stocks used for making exports till September 30.

A sales tax official said that normally in a period of three months, exporters exhaust their stocks for making exportable products.

While the government, through a sales tax notification SRO538 of 2005, stipulated tax period ending on June 30, 2005 as a cut-off date for declaration of sales tax on paid stocks, whereafter exporters would not be entitled to claim any adjustment or refund of sales tax on procuring tax-paid stocks.

According to the official, the benefit of refund or adjustment in respect of stocks declared under the SRO538 should be admissible only in case such stock were used for making exports up to tax period ending on September next.

In case of exporters, other than those covered under STREAMS, the claims should be processed and sanctioned, if admissible, on the 'First in, First out' (FIFO) basis after proper cross matching of input tax invoices and verification of stocks, if required.



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