Federal Board of Revenue unable to meet its target in January

Federal Board of Revenue unable to meet its target in January

Wednesday, February 1, 2012: Federal Board of Revenue (FBR) tax collection for the month of January falls short of its target. According to commendable sources, the tax collecting institute needed to collect Rs140 billion for January,
however, it was only able to accumulate somewhere between Rs124- 118 billions, meaning a shortfall of Rs10 to 16 billion.

Mahmood Alam, Officiating Chairman of FBR, was optimistic of reducing the gap between the target and actual amount received. The chairman reckons that there are certain payments (somewhere around Rs 6 billion) in the process and
once they are included the received amount would touch Rs 130 billion mark.

Alam said, “The figure is likely to touch Rs130 billion as some of the transactions are still in the pipeline.”

FBR had collected Rs86.5 billion by January 26, and were left with an uphill task of collecting Rs54 billion from just five days to meet the Rs140 billion target. However, FBR were able to collect Rs 44 – 38 billion from the amount
due.

The current fiscal-year (July 2011- Jun 2012) has witnessed FBR meeting its targets, the FBR managed to achieve average growth of around 25 per cent so far. January is the first month in the current fiscal year in which tax collection
has gone onto the negative zone.

FBR has set a target of Rs1,952 billion for the current fiscal year 2011-12. Till date the Federal Board of Revenue has amassed Rs965.2 billion in taxes. The collected amount is higher by 25.2 per cent compared to the corresponding
period of last year. It needs to keep the same growth rate to achieve the full-year target. Last year, tax collection stood at Rs1,556 billion.

Apart from the shortfall, FBR is also stuck with the predicament of finding a chairman, as the institute has been run on impromptu basis by Mahmood Alam, Member Strategic Planning, since Salman Siddique retired from the post on
January 20.

Analysts predict that in the absence of a full-fledged chairman, the FBR may not be able to reach the tax target.

Short URL: https://www.newspakistan.pk/?p=11501

Posted by Wajahat Javed on Feb 2 2012. Filed under Business, Pakistan. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry