The federal government has fixed Rs 3,620 billion revenue collection target for Federal Board of Revenue (FBR) for 2016-17 against Rs 3,104 billion for outgoing fiscal (2015-16), reflecting a growth of 16 percent. Sources told Business Recorder here on Thursday that the FBR has to generate additional revenue of Rs 516 billion in 2016-17 to meet the ambitious revenue collection of Rs 3620 billion for 2016-17. The FBR is in the process of finalisation of revenue generation measures for next fiscal year. The FBR has estimated that the exemptions of around Rs 130 billion granted through concessionary statutory regulatory orders (SROs) of customs duty, sales tax, income tax and Federal Excise Duty would be withdrawn in budget (2016-17).

The government had withdrawn concessionary/exemptions Statutory Regulatory Orders (SROs) of Rs 132 billion in 2015-16. Federal Board of Revenue had taken revenue generation measures of Rs 238.200 billion and administrative measures of Rs 15 billion in last budget. In total, the taxation and administrative measures totalled at Rs 253.46.255 billion. During last budget, the FBR had taken relief measures of Rs 29.210 billion. Out of Rs 238.200 billion new taxation measures, direct taxes measures of Rs 152.750 billion were taken in budget (2015-16). Sales tax and federal excise duty measures totalled at Rs 58.060 billion. The taxation measures of customs duty totalled at Rs 56.600 billion. The relief measures taken on the customs duty totalled at Rs 14.650 billion; sales tax Rs 4.060 billion and relief measures of income tax stood at Rs 10.500 billion for 2015-16.

Later, the government had taken taxation measures of Rs 40 billion by imposing 5-10 regulatory duty (RD) on the import of 350 luxury and non-essential items, one percent additional customs duty across the board on all tariff slabs, increase in Federal Excise Duty (FED) on cigarettes and increase in fixed duty on import of old and used vehicles (above 1000cc) from December 1, 2015.

Copyright Business Recorder, 2016