Tax revenues increased to the tune of Rs6 billion in the first seven months (July-January) of the current fiscal year as the newly placed Afghan Transit Trade (ATT) mechanism helped the Federal Board of Revenue (FBR) to curb smuggling and enhance green channel imports.
According to official data, FBR fetched Rs41 billion in the first seven months of the current fiscal year that rescued tax authorities and materialised around 27 to 28 percent growth so far in the current fiscal; in a bid to net the desired target of Rs1,952 billion for whole financial year 2011-12.
The FBR has so far collected Rs1,122 billion in the first eight months and it requires a challenging task to net the remaining Rs830 billion in four months (March-June) period to display the desired target of Rs1,952 billion on its board on June 30, 2012.
A top official of FBR said that strict compliance of rules and procedures laid down under the newly placed mechanism for clearance of goods under ATT started yielding positive revenue impacts as smuggled items were controlled vigorously, which resultantly helped import of certain items rise through official trade and increase revenues substantially.
Other administrative efforts include audit of withholding tax agents that netted Rs7 billion in first seven months of the current fiscal year. The effective monitoring of withholding agents is the major area that can yield more revenues in remaining months of the current fiscal year.
The recovery of arrears fetched Rs9 billion in first seven months of the current fiscal year, rescuing the FBR to materialise revenue targets so far in the current fiscal year.
The official data shows that the FBR generated revenues of Rs8 billion through current demands of tax liabilities piled up against taxpayers. The government had imposed 15 percent income tax surcharge and collection was due from companies on December 31, 2011, along with their returns. This 15 percent income tax surcharge helped the FBR collect Rs5 billion from this account.
Furthermore, the broadening of tax base exercise has materialised revenues to the tune of Rs1 billion in this period. The FBR detected illegal input adjustment cases and so far collected Rs1 billion out of it too.
The improved valuation of imports netted Rs3 billion and improved appraisement of imports through computerised system helped to additionally collect Rs1 billion, the document said.