ISLAMABAD: The government is contemplating to set revenue collection target at Rs 2,232 billion for the upcoming financial year 2012-2013 aiming at generating additional revenue through administrative measures and bringing non-taxpayers into the tax net, Media learnt on Tuesday.
Official sources said the government was most likely to fix revenue collection target at around Rs 2,232 billion for the upcoming fiscal year, which would be around 15 per cent higher than the target (Rs 1,952 billion) of the ongoing financial year 2011-2012.
However, sources further said that tax collection target would be finalised in next couple of months keeping in view the collection of current financial year. The government is expecting that revenue collection target of Rs 1,952 billion will be achieved at the end of June, which will pave way for the FBR to set Rs 2,232 billion target or even higher.
Chairman Federal Board of Revenue (FBR) Mumtaz Haider Rizvi had already hinted in the National Assembly’s Standing Committee on Finance and Revenue the other day that government would not impose any new tax in the upcoming budget for the year 2012-2013. However, the chairman said in the same committee meeting that Federal Board of Revenue was considering enhancing the rate of withholding tax on luxury vehicles in the next budget for FY 2012-2013.
Sources were of the view that government would focus on administrative measures to generate additional revenue. “The government will expedite the process of bringing non-taxpayers into the tax net during the fiscal year to come,” they added.
It merits mentioning here that Tax Reform Coordination Group (TRCG) in its last meeting that met with Finance Minister Dr Abdul Hafeez Shaikh in chair had recommended the government not to put burden of more taxes on the existing taxpayers. The TRCG meeting had decided that tax base should be broadened, documentation should be increased and there must be a gradual shift away from presumptive tax regime with increase in rate for presumptive tax regime towards eventual reduction in tax rate. – Nation