FBR to push the tax recovery to inject in Rs661 billion revenue deficit – Research Snipers

FBR to push the tax recovery to inject in Rs661 billion revenue deficit

In order to recover the huge revenue deficit of Rs661 billion, the FBR has accelerated its tax recovery drive for the current financial year ending on June 30.

The Federal Board of Revenue (FBR) officials have defined strict measures that will be initiated including tax recovery via bank accounts, attachment and arrests in order to meet the revenue target of Rs3.935 trillion for the financial year FY17-18, the News reported.

It is worth mentioning that the tax regulator FBR has already collected Rs3.274 trillion for the first eleven months from July to May FY17-18, but they are well short of 661 billion from the real target.

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The revenue collection was also affected due to the month of Ramadan and Eid holidays, the sources in Large Taxpayers Unit (LTU) Karachi, said. They also said that FBR could be harsh in the current measures as financial year is ending soon, FBR might inflict penalties and block bank accounts to get it fixed. The official said the majority of the recovery amount would be taken from corporate and associations who would pay advance tax for the 4th quarter.

The FBR is also hopeful for collecting a considerable amount from the amnesty schemes launched to disclose the undeclared assets. The FBR estimates RS35 billion to be collected from amnesty schemes and Rs10 could be injected in the last 10 days of the current financial year.

The FBR has restricted the leaves of all employees until June 30 to ensure maximum possible revenue collection.

Looking back at historical figures, the FBR projected Rs3.361 trillion in revenues during the last financial year 2016-17 and able to collect Rs507 billion during the last month, June 2017.

By maintaining current performance of 15% growth in revenue collection the tax regulator has the potential to collect Rs580 billion in the last month which would bring in the total revenue of Rs3.584 trillion for the current financial year FY17-18, the official said.