http://www.dailytimes.com.pk/default.asp?p...29-6-2006_pg5_2
Thursday, June 29, 2006
CBR sets Rs one trillion revenue collection target for next fiscal
By Sajid Chaudhry
ISLAMABAD: The Central Board of Revenue (CBR) has committed to the government an ambitious revenue collection target of Rs one trillion in the fiscal year 2007-08, a senior tax official told the Daily Times on Wednesday.
Abdullah Yusuf, Secretary-General of the Revenue Division (CBR), on Tuesday night at a reception held here disclosed this revenue projection before high officials of the tax body.
The revenue projection is based on potential of revenue generation in the country that at present stands at Rs 1.2 trillion (Rs 1,200 billion), according to the latest estimates, the official added.
Reforms, introduced under the Tax Administration Reforms Project, has increased economic activity in the country, expansion in production and manufacturing capability of the local industry, eliminating revenue leakages and bringing into the tax net of the emerging sectors of economy would help the CBR to enhance the revenue collection up to Rs one trillion in the fiscal year 2007-08, the official explained.
A CBR official said on Wednesday that the CBR is at present chasing a revenue collection target of Rs 690 billion and this target will be met on Thursday, June 29, as the collection has reached near this figure.
The final collection for the outgoing fiscal is expected to be between Rs 705 and Rs 710 billion when the final figures of tax collection would be compiled in next 15 days, the official added.
The government has set a revenue collection target of Rs 835 billion for the forthcoming fiscal year 2006-07 starting on July 1. The tax authorities would generate additional revenue of Rs 25 billion through new revenue measures announced in the budget 2006-07.
The major new revenue measures include Rs 3.6 billion from 15% excise duty on international air travel, Rs 2.3 billion from increase in tax on cash withdrawal from banks, Rs 3.6 billion by doubling the CVT and WHT rate on shares trading at stock exchanges, Rs 2.8 billion through the imposition of 5% excise duty on banking services, Rs 500 million from cable operators, Rs 800 million CVT on real estate business, Rs 2.5 billion from 15% sales tax on computer hardwares, Rs 3.3 billion from cigarette industry, Rs 700 million from insurance services and Rs 900 million from excise duty on royalty of franchise.
The direct taxes are projected to be Rs 271.913 billion in the next fiscal 2006-07 against the revised projection of Rs 134.739 billion in the outgoing fiscal year.
The income tax collection target has been fixed at Rs 257.800 billion for the fiscal 2006-07 as compared with Rs 215.500 billion in the current fiscal year.
Workers welfare fund collection target has been fixed at Rs one billion for the next fiscal year as compared with the revised estimates of Rs 550 million in the outgoing fiscal year 205-06.
The workers’ participation fund will contribute Rs 6.5 billion in the next fiscal year as compared with the projected collection of Rs seven billion in the outgoing fiscal year. The collection from capital value tax is projected at Rs 2.9 billion in the next fiscal year as compared with the revised projection of Rs four billion in the current fiscal year.
The indirect taxes are projected at Rs 569.01 billion in the next fiscal year as compared with the revised estimates of Rs 480.973 billion in the current fiscal year.
In the indirect taxes side, customs duty collection has been estimated at Rs 157.1 billion in the next fiscal year as compared with the revised estimates of Rs 136 billion in the current fiscal year.
The target for the sales tax collection in the next fiscal year has been fixed at Rs 341.6 billion against the revised collection target of Rs 286.5 billion in the outgoing fiscal year.
Other taxes have been projected at Rs 1.124 billion in the next fiscal year as compared with the projections of Rs 1.040 billion in the current fiscal year 2005-06.