Sources said on Tuesday that the FBR members including Member Sales Tax, Member Customs and Member Direct Taxes remained busy throughout the day in finalising the updated tax collection data to be presented before the President.
Pakistan's top revenue analyst and FBR Member Fiscal Research and Statistics Dr Ather Maqsood is likely to assist the FBR chairman in the briefing to the President.
President may be briefed on some new measures for increasing revenue collection in the remaining months of 2007-2008. Secondly, there is possibility that the FBR may seek approval for the revised downward target for 2007-2008. There is also a need of extra efforts to broaden tax base in an efficient manner.
It is important to mention that FBR has decided that the budgetary target of direct taxes will be reviewed after January 14 2008 ie last date of filing corporate returns.
Due to recent disturbances a shortfall of Rs 35 billion has been witnessed as of December 31, 2007. It was, however, observed that till November, revenue growth was 14.8 percent (cumulative) whereas up to December 2007, it was reduced to 4 percent. Total collection in December 2007 was Rs 90 billion as against 114 billion for the same period last year.
FBR Chairman has already briefed the Economic Co-ordination Committee (ECC) of the Cabinet on the performance of the collection of tax revenue. He informed the ECC that there had been reduction in tax collection in December 2007 due to disturbances and extended Eid holidays coupled with loadshedding and gas shortages. This had reduced growth of tax collection from 14.8 percent in the first five months of the financial year to 4.7 percent in the first six months (July-December 2007-2008).